A recent report by Bitso, one of the largest crypto exchanges in Latin America, found that Argentines were especially inclined to use and purchase stablecoins over other cryptocurrencies. Six out of every ten cryptocurrency purchases in Argentina involved stablecoins during Q1 and Q2, as these are used as a hedge against inflation and devaluation.
Bitso: Argentines Purchase the Most Stablecoins in Latam
A recent report by Bitso that surveys the behavior of Latam cryptocurrency users has found that Argentines are the largest purchasers of stablecoins in the region. The “Latam’s Crypto Landscape” report assesses that this has to do with several factors, including cultural ones, the exchange rate variation, and the high inflation registered during Q1 and Q2 2024.
These factors have made Argentines choose stablecoins over other crypto options, preferring to maintain the value of their savings instead of purchasing other cryptocurrencies as investments.
Julian Colombo, general director of Bitso Argentina, said this was a recurrent behavior in the Argentine cryptocurrency market. He stated:
Since 2023, we have noticed a boom in the crypto dollar. The stabilization of exchange rate volatility in 2024 contributed to a transition towards more volatile cryptocurrencies such as bitcoin or ether.
Nonetheless, six of every ten purchases during Q1 and Q2 were focused on acquiring stablecoins, way higher than the 36% average registered for Latam. Colombo also explained that these purchases were almost all related to value protection purposes. “The largest number of purchases occurs in the first week of the month, which shows that many acquire crypto when they receive their salary, to protect themselves,” he stressed.
Meanwhile, only 12% of the transactions made purchased bitcoin, a number that is less than half of Latam’s average. However, Colombo states that bitcoin still has a place in the wallets of Argentines, considering it a savings or investment asset, while stablecoins are adopted for their transactional value.
Other exchanges had reported that bitcoin investments had risen in March, linking this to the relatively strong performance of the Argentine peso versus the U.S. dollar.