coinspress.com
Amid Argentina's economic turmoil with a 276% inflation rate, there's a notable shift towards Bitcoin as a wealth safeguard, diverging from the traditional practice of peso-dollar exchange.
Bitcoin transactions hit a two-year peak, notably on Lemon exchange, reflecting Argentinians’ quest for financial stability amidst recession and high inflation.
This trend contrasts with the decline in peso-dollar exchanges, coinciding with Bitcoin’s 60% surge against the dollar. Lemon saw a doubling in weekly Bitcoin purchases, signaling a broader trend among major exchanges like Ripio and Belo.
Milei’s strict money supply control contributes to peso strength, as the central bank refills USD reserves.
CEO Manuel Beaudroit notes a tenfold increase in Bitcoin and Ethereum transactions, with fewer stablecoin purchases as investors are drawn to Bitcoin’s rally.
READ MORE: Ethereum Whales Cash Out Millions Amid Market Downturn
This shift indicates Argentinians diversifying savings, seeking inflation hedge after years of relying on dollars.
The government’s support for crypto investments, including tax incentives announced in December 2023, further reinforces this trend.