Argentina: “Adoption of crypto is high, but adoption of stable currency is also very high”

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The end of 2021 saw many home quarantines due to the Omicron variant of the COVID-19 virus. However, the founder of Ethereum, Vitalik Buterin, was in Argentina. After his trip, Buterin shared some thoughts on the state of crypto adoption in the South American country.

Argentinian adventures

Quoting an article he wrote in 2013, the founder of Ethereum said he predicted that Bitcoin would help the people of Argentina and Iran protect their wealth. Moreover, he pretended to guess that stable coins would increase. After his visit to South America, he said:

“Last week I went to Argentina! My verdict: overall correct. Adoption of cryptocurrency is high, but adoption of stable currency is also very high; many companies operate in USDT. Of course, if the USD itself starts showing more problems, that could change.

Argentina is known for its relatively high cryptocurrency adoption rates, both in terms of crypto-payments and Bitcoin mining. In particular, inflation is a major push factor. In fact, the Blockchain LatAm report for 2021 stated:

“A survey commissioned from Toluna by Sherlock Communications that asked Argentines why they would consider investing in cryptocurrencies found that 66% of those polled were more concerned with protecting their savings.”

The popularity of stable coins is also adding. Argentines are only allowed to withdraw limited volumes of US dollars and must pay taxes on them. To protect their savings, USDT would be a natural choice.

In addition, the country is said to have hosted its first Bitcoin-indexed ETF in October 2021.

Rent Ethereum!

Buterin was far from traveling incognito while exploring Argentina. On December 18, former Argentine President Mauricio Macri tweeted about his meeting with the founder of Ethereum. According to a rough translation he said,

“An exciting meeting with Vitalik Buterin, creator of Ethereum, one of the most innovative decentralized technologies of our century. Its Ether currency is one of the most popular in the world. We discuss the role of crypto and blockchain opportunities for states… ”

It is indeed a statement filled with possibilities. However, it remains to be seen whether the current administration would agree.

For his part, Buterin also touched on the fact that government censorship could have an effect on Bitcoin. He proposed that if Bitcoin could “survive” under state control, it might not “thrive.”

Soon … a crackdown?

As Buterin has hinted, it’s not an easy race for crypto companies in the region. At the end of December, the Central Bank of the Argentine Republic announced that it was investigating crypto companies offering “extraordinary returns.”

Additionally, crypto analysts will need to keep an eye on the U.S. dollar to see if Argentina’s purported USDT strategy is sustainable.

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