- Cryptocurrency trading volume against the Argentine Peso has grown by 400% this year.
- The Argentine Peso is now the fastest-growing crypto trading pair in Latin America.
- Milei’s election and his pro-Bitcoin stance have contributed to the surge in crypto adoption.
- A new mandatory registry for Virtual Asset Service Providers has been introduced in Argentina.
- Despite the growth, the Argentine Peso remains the lowest trading fiat currency in the region.
In a remarkable turn of events, cryptocurrency trading volume against the Argentine Peso (ARS) has skyrocketed by a staggering 400% this year, marking it as the fastest-growing crypto trading pair in Latin America. This surge in crypto activity comes amidst ongoing economic volatility and the recent election of Javier Milei, an anarcho-capitalist and libertarian leader, to the presidency in December 2023.
“There has been a marked decline of inflation, which could be leading the Argentine Peso to be more used on local exchanges.”
Manuel Ferrari
The Rise of Crypto in Argentina
According to a recent report by Kaiko Research, the Argentine Peso has emerged as the most popular fiat currency for crypto trading in the region, surpassing even the Brazilian Real and Mexican Peso. The report highlights a significant increase in crypto trading volume against the Colombian Peso, which grew by 40%, while trading against the Brazilian Real and Mexican Peso declined.
Manuel Ferrari, co-founder of Bitcoin-backed stablecoin protocol Money On Chain and a board member of the Bitcoin Argentina NGO, attributes this growth to the expectation creep before last year’s election and the possibility of further devaluation of the Peso. He notes, “There has been a marked decline of inflation, which could be leading the Argentine Peso to be more used on local exchanges.”
Milei’s Role in Crypto Adoption
The election of Javier Milei, known for his pro-Bitcoin stance, has fueled the adoption of cryptocurrencies in Argentina. Milei’s plans to rebuild the national economy and dollarize it are expected to further boost Bitcoin and cryptocurrency adoption in the country. However, some experts, like del Palacio from the Comisión Nacional de Valores, caution that Milei’s policies might not align perfectly with the crypto market’s expectations.
Regulatory Developments
In late March, the Comisión Nacional de Valores announced a new mandatory Registry of Virtual Asset Service Providers for those operating with crypto assets in the country. Companies and individuals engaging in such activities must now comply with the registration approved by the Argentine senate as part of the amendments to the regulatory framework addressing the Financial Action Task Force recommendations.
The Future of Crypto Trading in Argentina
Despite the impressive growth in crypto trading volume against the Argentine Peso, it remains the lowest trading fiat currency in the region, with a monthly volume of $400 million. However, the trend is clearly upward, with more and more Argentines turning to cryptocurrencies as a hedge against the Peso’s volatility and the country’s economic challenges.
As the cryptocurrency market continues to evolve in Argentina, it will be interesting to see how Milei’s policies and the regulatory environment shape the future of crypto trading in the country.
© Cryptopress. For informational purposes only, not offered as advice of any kind.
