Translated from Exame
Bitcoin adoption in Argentina surpasses that of El Salvador, says Ark Invest
Argentina is currently facing a strong economic crisis, characterized by soaring inflation and a significant devaluation of its currency, the peso. According to Ark Invest, this situation is causing Bitcoin adoption in the country to outpace that of El Salvador, which has adopted the cryptocurrency as legal tender.
Although no data were presented to support this claim, analyst David Puell mentioned in a conversation on Tuesday, the 29th, that he had with Angela Dalton, CEO of Signum Growth Capital, who recently traveled to El Salvador. She noted that despite state support, the use of the cryptocurrency in the country has not advanced significantly.
"Knowledge about Bitcoin is high, but usage is still low. There's a general sense of pride among the Salvadoran population for the country's early adoption of a new technology," stated Dalton. In her view, the asset's usage is still concentrated in tourist destinations.
Puell highlighted that the low adoption of Bitcoin in El Salvador makes sense when considering the fact that the US dollar has also been legal tender in El Salvador since 2001. Therefore, the American currency "protected purchasing power from the inflation and devaluations that have devastated other countries in the region."
"In contrast, the price of Bitcoin has been quite volatile amid increasing challenges as it strives to evolve into a monetary system with greater liquidity and global adoption," evaluated the analyst from Ark Invest. Consequently, the cryptocurrency has a smaller adoption space in El Salvador.
Bitcoin in Argentina
On the other hand, Puell emphasized that the scenario in Argentina is more favorable for digital assets. Inflation in the country reached a staggering 147% this year, while the peso experienced significant devaluation. As a result, the population is more open to monetary alternatives.
However, experts have told EXAME that Bitcoin's adoption among the Argentine population is not as extensive as that of stablecoins. These cryptocurrencies are pegged to other assets, usually the dollar, and have emerged as an alternative means of exposure to the US currency.
Puell also noted that the lead of the candidate Javier Milei in the primaries of the Argentine presidential elections caused the price of Bitcoin to surge in the country. In his view, a victory for the far-right candidate could benefit both the cryptocurrency and the purchasing power of the Argentine people.