Despite the country’s highly publicized dollarization of its economy, and rejection of its BRICS invitation, Argentina citizens may already be ditching the US dollar for Bitcoin. Indeed, a new report from local cryptocurrency exchange Lemon revealed that the savings strategy in the country had preferred the digital asset to the greenback.
Bitcoin investments have replaced the long-held action of exchanging pesos for US dollars in Argentina. Specifically, BTC purchases have reached their highest figure in over a year, with the country still looking for better dollar alternatives. The transition is taking place amid the recent election of President Javier Milei, a proponent of dollarizing the nation.
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Argentina Already Looking to Bitcoin Over the Dollar?
Argentina has made headlines for the past few months. As far back as November 2023, the country had prominently elected a new president in radical Javier Milie. A strong advocate of Bitcoin, he had expressed a desire to dollarize the economy of the country. Moreover, following his election, Milei rejected a previously accepted invitation to join the BRICS alliance.
Since then, the country has been facing a devaluing currency under the new regime. Subsequently, despite its desenscion from BRICS, Argentina appears to be ditching the US Dollar for Bitcoin. At least, there has been a massive influx in BTC investments as opposed to that of the greenback
Despite a price correction for Bitcoin this week, the Lemon crypto exchange in Argentina reported 35,000 transactions for the week of March 20th, according to Bloomberg. Additionally, the week prior saw more than 27,000 Bitcoin purchases being made. The evident Rush of BTC usage has been an unusual development according to most analysts, as the country is seeking ways to manage its economic circumstances.
Also Read: BRICS: Argentina Peso to Devalue More Than 50% Under Milei
Moreover, the renewed focus on Bitcion is a stark change for the country. According to a Lemon report in February, Argentina had made 80% of its crypto purchases in stablecoins. These dollar-pegged assets showed its continued reliance on the US Dollar. Yet, that appears to be shifting now.
It is not just LEmon who has seen the change. Local crypto wallet manufacturer, Belo, has seen its CEO Manuel Beaudroit recognize similar changes. Specifically, noted a tenfold increase in both Bitcoin and Ethereum purchase volumes.
Additionally, he noted that Argentinian citizens have decided “to buy Bitcoin when they see the news that the currency is going up.” Observing how the economy makes use of these statistics will be very important. Indeed, Milei has not been shy about his willingness and advocacy of BTC.