The country of Argentina is reportedly gradually adopting a pro-crypto adoption stance as a means of fighting against the rising level of inflation. 

Specifically, since 2016, Argentina has reportedly been fighting a battle against inflation caused by numerous reasons, nominally the trust insufficiency in the central bank or government overspending, and the depreciation of the Argentinean peso has left a negative effect on citizens’ purchasing power.

This has reportedly resulted in 37.3% of the population falling below the poverty line, with numoerus others lost their savings entirely. 

Against this backdrop, a large number of citizens in the nation have selected Bitcoin (BTC) and crypto as a means for hedging against 60% inflation, regardless of the recent flood that swept through the market, signaling a possible winter, as well as the central bank putting a ban on financial establishments to deal with virtual assets.

As included in an Americas Market Intelligence report published by Reuters, the insights reportedly suggested that “crypto penetration” in Argentina had achieved 12% – twice the number recorded for Peru, Mexico and other nations in the territory.

Apart from Bitcoin, people in Argentina have been eyeing at stablecoins more and more as a storage vehicle for their value in the United States dollar, particularly as their nation applies strict capital controls on foreign exchange services.

Upon his trip to Argentina in December last year, the creator of Ethereum, Vitalik Buterin, reportedly claimed that cryptocurrency adoption in the nation was on an inclining pattern, and that stablecoin adoption was also witnessing major growth. 

He also issued a warning that this development could go south should the U.S. dollar started displaying serious issues.