Key Takeaways
- Argentina's Bitcoin adoption soars amid 276% inflation rate.
- Lemon Bitcoin exchange has seen near-record Bitcoin transactions.
- Some Argentines have shifted from dollars to Bitcoin for inflation protection.
In response to a 276% inflation rate, many Argentines are shifting from traditional dollar-saving methods to Bitcoin.
Bloomberg reports that this trend is driven by the desire to protect wealth from economic instability.
Record Bitcoin transactions at Lemon exchange
Local exchange Lemon reported near-record bitcoin purchase volumes, the highest in 20 months.
The parallel exchange rate has strengthened by 10% against the dollar, while Bitcoin has rallied nearly 60% in the same period.
Lemon alone saw 35,000 user transactions in the week ending March 10, doubling the previous year’s weekly average.
Protection against inflation
Historically, Argentinians favored US dollars for savings. However, recent trends show a shift towards Bitcoin for inflation protection.
President Milei’s tax incentives for declaring digital assets have also boosted Bitcoin investment.
Transaction volumes in 2024 have increased tenfold compared to the previous year.
Challenges and consumer behavior shifts
Despite the growing interest in Bitcoin, Argentina has seen a fivefold increase in digital asset scams.
Bitcoin Argentina’s legal head, Gabriela Battiato, warns against impulsive decisions due to financial desperation.
Manuel Beaudroit, CEO of digital wallet Belo, observed a shift from stablecoin to Bitcoin purchases, driven by Bitcoin’s rising value.
