Argentines Turn to Bitcoin Trading Amid Rising Inflation
Argentines continue to enter the crypto market and engage in P2P Bitcoin trading. The volume of P2P Bitcoin trading has been consistent as the country faces high inflationary volumes.
Argentinians continue to flock to Bitcoin as the country feels the effects of high inflation. The numbers representing P2P Bitcoin trading in the country have been consistent over the past 12 months.
Bitcoin trading explodes in Argentina
The P2P Bitcoin trading volumes in Q4 2022 showed a marked increase compared to Q2 and Q3 2022. On top of that, with the way trading is going, it looks like Q1 2023 will top the volume in Q4. quarter 2022. January and February each saw volumes in excess of 42.8 million Argentine pesos.
It is not a record high, but there is a clear trend with volumes remaining stable in recent quarters. P2P Bitcoin trading is popular in the country and has been since 2019.
The biggest contributor to this is the economic condition of Argentina. The country has struggled in recent years, and Argentines have turned to other means to protect their wealth.
Argentina is battling high inflation levels and rising CPI
In 2023, Argentines have embraced cryptocurrencies more enthusiastically than before. This time, stablecoins are the main choice for half of the population, according to a recent survey. About 17% of the population bought crypto last year.
Argentina Inflation: Tradingeconomics.com
This increased interest in crypto is due to high inflation and a rising consumer price index (CPI). The peso lost almost 12% against the US dollar in January. Inflation has reached a whopping 99%, which does not bode well for the future.
Meanwhile, Coinbase’s Brian Armstrong has proposed that Argentina and Brazil use Bitcoin as a common currency. He received a lot of criticism for his opinion.
The government is working on crypto regulations
As Argentina faces these economic problems, it has also grappled with cryptocurrency regulation. The government is considering mandating Proof-of-Solvency procedures for stock exchanges and custodians. The collapse of FTX triggered this demand.
The National Securities Commission is also working on requirements and regulations for crypto companies. As for the citizens who have taken to crypto amid all the financial turmoil, the government is hoping that tax incentives will prompt them to disclose their holdings.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
