Argentina’s inflation figures were revealed last week, with the interannual consumer price index (CPI) registering record highs reaching 78.5%. That puts the country second behind Venezuela in Latam in terms of high inflation, with prices up almost 8% in August, hitting the pockets of Argentines. AAccording to a Bitso investigation, this led Argentines to explore cryptocurrencies as a way to retain purchasing power through stablecoins.
Argentinian inflation continues to rise and is expected to reach 100% this year
Inflation is becoming a big problem for some Latin American countries whose economies have been affected by the current economic downturn. Argentina, one of the largest economies in the region, is now facing raging levels of inflation that are hurting the pockets of citizens. The latest CPI report revealed that prices rose 7% month-on-month (month-on-month), with these figures second only to inflation in Venezuela, which reached well over 100%. year-over-year (year-on-year).
Food and beverage prices rose 7.1% in August, while other items rose more sharply, such as clothing and household appliances. Cumulative inflation figures hit 78.5%, the highest since 1991 amid economic and political uncertainty, with the country having three economy ministers in less than three months. The Argentine peso is one of the fiat currencies that has suffered the most in Latam, losing more than 25% against the dollar if we consider the official rate, and almost 50% of its value taking as a reference the rates unofficial “blue” exchange rates.
Crypto thrives in emerging markets
The poor performance of the Argentine economy has led its citizens to explore other ways to maintain their purchasing power against inflation and to consider cryptocurrencies and stablecoins even amid the current negative price trend. . While Argentina is no longer in the top 10 countries with the most cryptocurrency adoption, according to Chainalysis, local studies confirm that adoption continues to grow.
A recent survey conducted by Bitso, a Mexico-based cryptocurrency exchange, indicated that there is a high level of awareness of cryptocurrency assets in Argentina. The survey revealed that 83% know about cryptocurrencies, of which almost 34% have specific knowledge about these tools.
Furthermore, of the 83% who are aware of cryptocurrencies, 10% already own or currently own cryptocurrency assets as part of their investment portfolio, while almost 23% want to have them in the future. . The goal of these investors in possession of crypto is to use it like they would use fiat currencies and maintain their savings even with these inflation numbers.
What do you think of Argentina’s recent inflation figures and the popularity of crypto? Tell us in the comments section below.
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