Ray Jimenez Bravo
Bitso reports key data: Argentina prefers stablecoins, while Brazil combines Bitcoin with an interest in altcoins
Bitso presented its report “Crypto Panorama in Latin America” for the first half of 2024, in which Argentina shows that so-called stablecoins are the second most present cryptocurrency in wallets. On the other hand, Brazil shows that the possession of altcoins surpassed the presence of Ethereum in the wallets that were part of the report.
Bitso, an exchange with the largest number of users in Mexico, also has a presence in other countries such as Colombia, Argentina and Brazil. On this occasion, we will focus on the details of the data collected in its report on Argentina and Brazil.
Bitcoin in Argentina is approaching 80 million pesos
Argentina
The South American country was the only one that managed to position stablecoins, such as USDC or USDT, second in users' wallets. The data from the report shows that as of June 30, 2024, the holding of these stablecoins stood at 22% of the total cryptocurrencies per wallet. Bitcoin remains in first place, representing 50% of Bitso users' wallets.
They considered that this trend in Argentina is deeply influenced by the country's macroeconomic conditions, characterized by high inflation and a persistent devaluation of the Argentine peso.
The preference for stablecoins reflects an adaptation of the historical inclination of Argentines to take refuge in the US dollar as a protection mechanism against the depreciation of the local currency, now transferring this practice to the realm of cryptocurrencies.
It is important to note that only 2% of local holdings are denominated in Argentine pesos, which underlines the loss of confidence in the national currency. Despite this aversion to the peso, a 4 percentage point decline in the holding of digital dollars was observed on a semester-over-semester basis.
This decline could be explained by a slowdown in inflation and a relative stabilization of the exchange rate after a change of government, which has moderated the urgency of protecting the value of dollarized assets.
However, the use of stablecoins in Argentina goes beyond simple inflation coverage. These assets are not only used to maintain liquidity or take advantage of market declines, but they also play a strategic role in the wealth management of Argentines involved in the crypto ecosystem.
This highlights a growing sophistication in the way the Argentine community uses cryptocurrencies, integrating them not only as an economic defense, but also as a key part of their financial planning.
