Chainalysis
October 10, 2024
Chainalysis Unicorn News - October 10, 2024
A new report from Chainalysis reveals a significant increase in stablecoin transactions in Argentina, as citizens turn to digital currencies in response to ongoing economic instability and high inflation rates.
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) Introduction(
) Chainalysis Reports on Rising Stablecoin Use in Argentina Amid Economic CrisisA recent report by Chainalysis has highlighted a significant increase in the use of stablecoins in Argentina, a trend driven by the devaluation of the Argentine peso and high inflation rates. The report indicates that 61.8% of all cryptocurrency transactions in Argentina now involve stablecoins, surpassing Brazil's 59.8% and nearing Colombia's 66%. This shift is primarily due to Argentines seeking to protect their wealth by gaining exposure to U.S. dollars, as inflation reached 236.7% over the past year through August. Economic policies under President Javier Milei, including a 50% devaluation of the peso, have further accelerated this movement towards stablecoins. This trend is reflective of a broader pattern across Latin America, where economic instability is prompting increased cryptocurrency adoption. In Venezuela, cryptocurrencies are being used to counteract economic challenges, while Brazil has experienced a 48.4% rise in high-value crypto transactions from late 2023 to early 2024. This increase is attributed to regulatory advancements and the introduction of Bitcoin and Ethereum ETFs. These developments underscore a regional shift towards cryptocurrencies, particularly stablecoins, as a more stable store of value amidst fluctuating local currencies.