Argentina Tops Latin America in Stablecoin Purchases and Holdings: Report

cryptonews.com:

Argentina, a nation grappling with a severe economic crisis and a plunging peso, has emerged as the leading purchaser and holder of stablecoins in Latin America over the past six months, as per a report by Mexican-founded crypto exchange Bitso.

Bitso’s recently published ‘Crypto Landscape in Latin America: Report 2H 2023’ delves into the trends shaping the crypto market in several Latin American countries with notable crypto adoption, including Colombia, Argentina, Brazil, and Mexico.

Throughout the second half of 2022 and all of 2023, there has been a notable embrace of cryptocurrencies in the region, reflecting an increasing acceptance among the local population, despite market volatility and local economic difficulties. Argentina stands out as the only country in the region where the acquisition of digital dollars surpasses that of other cryptocurrencies by nearly five times.

The report reveals that amidst economic turmoil, 60% of Argentine crypto purchases on Bitso were allocated to dollar-based stablecoins such as USDT and USDC, with just 13% of purchases dedicated to Bitcoin. This contrasts with Colombia, Brazil, and Mexico, where stablecoin purchases ranged between 31% and 40% of total crypto acquisitions.

Notably, these stablecoins emerged as some of the “fastest-growing” cryptocurrencies in the area. Bitso’s analysis reveals that approximately 26% of the average portfolio of users in Argentina comprises stablecoins, driven primarily by the country’s economic environment. Bitso attributes the significant demand for stablecoins in Argentina to the prevailing political and economic context, where citizens seek alternatives to combat inflation and currency devaluation.

Argentina, the region’s second-largest country by