According to a report published by Ranking Ratham, Argentina surpassed countries like Brazil and El Salvador, reaching a crypto ownership milestone of nearly 20%. The region’s adoption is highly concentrated, with six countries hosting over 80% of crypto ownership.
Argentina is once again leading the adoption of cryptography in Ratum
Latin America (LATAM) is one of the most dynamic regions around the world regarding the use of cryptocurrency, and Argentina is once again at the forefront. Rankings LATAM reports show that Argentina is the most crypto-owned country in the region, with 19.8% of Argentina owning digital assets.
The country has overcome a crypto giant like Brazil, which reached 18.6%, and overcame El Salvador, which had not surpassed the 15% mark with government support. The cryptocurrency ownership in the region is highly concentrated, with over 85% of all cryptocurrency owners in six countries (Argentina, Brazil, Chile, Colombia, Mexico and Peru).
Ranking LATAM has linked this high level of ownership to economic difficulties and the lack of access to financial services experienced by some of these countries. It stated:
Countries with high economic volatility and limited access to traditional financial services not only show a high level of ownership, but also promote fastest growth and suggest deeper regional trends towards digital finance alternatives.
Julian Colombo, general manager of Bitso Argentina, one of the biggest crypto exchanges focused on Latam, says it is a special case of cryptography given the distrust that citizens have in the Fiat-driven alternative. “There is a structural component of mistrust in financial institutions due to kolalit (currency management), consecutive restrictions, and premature regulations change,” he said, noting that this naturally works in favour of crypto adoption.
The dynamism of the Argentine cryptocurrency market has been studied by other countries and is trying to understand how local regulations support it. In July, a group of US lawmakers traveled to the country and met with representatives from the national cryptocurrency ecosystem to examine local tax treatment of crypto assets and advances in regulations regarding stable and exchange.
Read more: US lawmakers travel to Argentina: Examining local crypto ecosystems