Argentina has emerged as the leading Latin American country in terms of estimated cryptocurrency inflows, surpassing Brazil, according to a new report by Chainalysis. Between July 2023 and June 2024, crypto users in Argentina deposited a total of $91 billion, making it the top crypto destination in the region. Brazil followed closely with $90 billion in total inflows during the same period.
The rapid growth of crypto adoption in Argentina comes amid its ongoing battle with inflation and local currency devaluation, driving citizens to seek alternative means of preserving their wealth, such as the US dollar or dollar-pegged stablecoins. Chainalysis highlighted that Argentina’s stablecoin market is one of the largest globally in terms of the share of stablecoin transactions, exceeding the global average by 17%.
Argentina’s stablecoin transaction volume accounted for 61.8% of crypto activity from July 2023 to June 2024, slightly ahead of Brazil’s 59.8% and significantly above the global average of 44.7%. This trend underscores how Argentinians are increasingly relying on stablecoins to protect themselves against economic instability. The share of retail-sized stablecoin transactions—those under $10,000—is also growing faster than any other asset type, emphasizing the role of stablecoins in shielding personal finances from inflation.
Tether, the operator of the world’s largest US dollar-pegged stablecoin, has prioritized markets like Argentina over developed economies. Tether CEO Paolo Ardoino recently described Argentina’s demand for digital dollars as a response to the need for more convenient alternatives to holding cash. The increased adoption of stablecoins is also evident in Argentina’s monthly stablecoin trading volumes with the Argentine peso, reflecting a broader shift toward using blockchain-based assets for financial stability.
The report from Chainalysis also comes as Argentina positions itself as a crypto-friendly nation. Following the election of pro-Bitcoin President Javier Milei in December 2023, Argentina officially allowed the use of Bitcoin in legally binding contracts. Despite its progressive stance on cryptocurrency usage, the country has yet to implement a regulated framework for digital assets, leaving the market largely unregulated.
Argentina’s rise in crypto adoption contrasts with other developed economies, such as those in Europe, which have pushed forward with stablecoin regulations in recent years. As Argentina’s crypto market continues to grow, regulatory clarity will be crucial to sustaining its position as a key player in the Latin American crypto ecosystem.