(MENAFN- The Rio Times) Latin America boasts over 40 million cryptocurrency users, with Argentina at the forefront. This nation accounts for 40% of the region's new crypto app users.
The drive behind this surge is the Argentine peso's rapid devaluation and the quest to combat high inflation.
A 2023 report by Lemon, an Argentine exchange, reveals that 80% of crypto transactions involved stablecoins, reflecting a shift towards more stable assets.
The National Securities Commission of Argentina notes that the country has over 10 million crypto asset accounts, equating to the number in traditional capital markets.
This insight, shared by Martín Breinlinger during a Senate debate, highlights Argentina's keen interest in cryptocurrencies.
Brazil and Mexico follow Argentina in regional crypto adoption.
Despite Brazil's larger economy, Argentina outpaced it in crypto transactions from June 2022 to July 2023, amassing a gross volume of $85.4 billion, Lemon reports.
The bear market between 2022 and 2023 saw a dip in crypto users, yet Latin America's decrease was milder compared to the US.
In December 2023, Latin America had 5.7 million crypto app users, surpassing Coinbase's 2.3 million weekly users in the US.
Stablecoins dominate transaction volumes in Latin America, exceeding 60%, unlike in the US, where they make up half.
Argentina's economic instability and widespread internet access (over 92% household penetration in Q3 2023) fuel crypto adoption.
Argentinians favor stablecoins for their dollar parity, enabling easy and affordable trading. Apart from stablecoins, Bitcoin is valued as a long-term investment in Argentina's shaky economy.
In addition, Argentinians use various crypto platforms, with Binance and Lemon Cash leading.
Lemon Cash peaked in user numbers in May 2022 but faced transparency concerns in May 2023.
It responded by enabling blockchain verification of assets, boosting transparency and user trust.
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