Bitcoin demand in Argentina surges to highest level in almost 24 months

According to a recent report, Argentines are turning to Bitcoin in an effort to preserve their savings amidst the ongoing decline of their national currency, the Argentine peso. The report, sourced from cryptocurrency exchange Lemon Cash, revealed that nearly 35,000 customers in Argentina purchased Bitcoin in the week ending March 10, which is double the weekly average compared to 2023. The decline of the peso against the United States dollar over the past year has been a major factor in the increased demand for Bitcoin. The peso’s value dropped from $0.0049/peso in March 2023 to $0.0012/peso at the time of publication. Other major exchanges in Argentina, such as Ripio and Belo, have also reported similar trends. Belo’s CEO, Manuel Beaudroi, stated that stablecoin purchases in Argentina declined from 70% to 60% as Bitcoin’s recent price surge attracted more interest. He also mentioned that Belo has seen a tenfold increase in volume for Bitcoin and Ether in 2024 compared to the same period last year. However, a recent report suggests that interest in stablecoins may still exist, as Argentines are using black market exchanges, known as “crypto caves,” to buy U.S. dollar stablecoins to escape strict currency controls and rising inflation. Despite this, the use of digital currency for specific transactions is slowly gaining traction in Argentina. In December 2023, a decree was passed allowing the use of Bitcoin and other cryptocurrencies in the country under certain conditions. As a result, a local landlord and tenant in Rosario sealed a rental agreement where the tenant would pay monthly rent in Bitcoin.