On October 10, 2024, a report by Chainalysis revealed that Argentina's stablecoin usage is surging, correlating with the country's economic turmoil. Stablecoins accounted for 61.8% of all crypto transactions in Argentina, surpassing Brazil's 59.8% and indicating a growing reliance on these assets as a hedge against inflation.
Argentina's inflation rate hit 236.7% in August 2024, prompting citizens to seek alternatives to the rapidly devaluing peso. The report highlighted that stablecoins, particularly USD-pegged ones, have become essential financial tools for navigating economic instability.
In the past year, Argentina received $91.1 billion in crypto, leading Latin America, followed closely by Brazil with $90.3 billion. The report noted a significant increase in high-value transactions in Brazil, attributed to renewed institutional interest and the approval of Bitcoin and Ethereum ETFs.
The election of President Javier Milei and his economic measures, which devalued the peso by 50%, further intensified the demand for stablecoins. This trend underscores the critical role of cryptocurrencies in stabilizing finances in regions facing severe currency devaluation.