Crypto Boom: How Argentina Surpassed El Salvador in Bitcoin Adoption

The post Crypto Boom: How Argentina Surpassed El Salvador in Bitcoin Adoption appeared first on Coinpedia Fintech News

Pro-Bitcoin supporter Javier Milei won the primary presidential election in August, leading Argentinian politics by storm, favoring a new, radical economic concept. With the Argentina Presidential election knocking on the door, most of the public supports Mr. Milei in hopes of pulling the country out of the crisis and driving it toward economic prosperity. 

Cryptocurrency v. Argentinian Pesos

When it comes to having a large consumer base, Argentina has one of the biggest consumer bases for Bitcoin. One-third of the population uses Bitcoin for daily financial transactions. However, a major factor in the large-scale adoption of cryptocurrency is the financial crisis in Argentina. While the rest of the world uses cryptocurrency as a source of investment, Argentina views it as a store of value. 

The adoption rate of cryptocurrency in Argentina has even surpassed El Salvador, a country whose president declared Bitcoin as the national currency in 2021. 

Bitcoin values more than Argentinian Pesos when compared to US Dollars. The value of bitcoin in the country reached an all-time high in August this year when the country’s inflation peaked. To date, Bitcoin has reached its highest of 9.3 million ARS in September. 

Contrasting Regulations in Argentina

Although most of the population uses cryptocurrency daily, the BCRA prohibits the national banks of Argentina from allowing cryptocurrency transactions and trading. BCRA members also banned the transfer of cryptos within conventional financial banks when Banco Galicia attempted to provide crypto trading services in 2022. 

Dollarization through Bitcoin 

Javier Milei is referred to as a ‘pro-bitcoin supporter’ and often compared with Nayib Bukele, the president of El Salvador, where Bitcoin is the national currency. However, there is a striking difference between their ideologies. Bukele turned to Bitcoin to escape from the constraints of dollarization; on the other hand, Javier has been a major supporter of Bitcoin in hopes of bringing dollarization into the country.

Javier Milei is a liberalist and strongly advocates for eliminating the Central Bank. 

Probability of Disappointment 

The cryptocurrency community has greatly appreciated Milei defending people’s right to use any cryptocurrency. Although he has actively supported Bitcoin, his ultimate goal of introducing dollarization in the country disappoint the crypto-community in the future. 

Milei’s approach to Bitcoin adoption raises the ire of various government institutions, notably the IMF, which fiercely opposes Bitcoin cryptocurrency. Milei’s manifesto contains proposals to dollarize the country’s economy to stabilize the local currency.