NEW: Argentines Flock to Bitcoin Amid Peso Decline, Highest Demand in 20 Months

Amidst Argentina’s economic instability, a surge in Bitcoin demand has emerged as citizens seek to safeguard their savings against the plummeting value of the Argentine peso (ARS). Bloomberg reported a significant uptick in Bitcoin purchases, with nearly 35,000 customers in Argentina acquiring the cryptocurrency in a single week, marking the highest demand in 20 months. The ARS has experienced a drastic devaluation, dropping fourfold against the US dollar over the past year, compelling Argentines to explore alternative assets like Bitcoin for wealth preservation.

Major cryptocurrency exchanges in Argentina, including Lemon Cash, Ripio, and Belo, have witnessed a notable increase in Bitcoin transactions, signaling a growing interest in digital assets amidst currency volatility. Manuel Beaudroi, CEO of digital wallet Belo, highlighted the shift from stablecoins to Bitcoin, attributing it to Bitcoin’s recent price surge and its perceived role as a store of value. Despite Bitcoin’s popularity, stablecoins remain relevant for international transactions, offering a pragmatic solution for making payments abroad amidst Argentina’s economic challenges. The surge in Bitcoin demand underscores the resilience of cryptocurrency adoption in the face of economic turmoil, reflecting a broader trend of individuals seeking financial stability through digital assets.

Bloomberg

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