According to a report issued by Rankings Latam, Argentina hit a milestone of nearly 20% crypto ownership, surpassing countries like Brazil and El Salvador. The region’s adoption is highly concentrated, with 6 countries hosting over 80% of the crypto ownership.
Argentina Leads Crypto Adoption in Latam Once Again
Latin America (Latam) is one of the most dynamic regions regarding the use of cryptocurrency in the world, and Argentina is at the forefront once again. A Rankings Latam report has found that Argentina is the country with the most crypto ownership in the region, with 19,8% of Argentines owning digital assets.
The country overcame crypto behemoths like Brazil, which reached an 18.6%, and El Salvador, which, even with government support, did not rise over the 15% mark. Cryptocurrency ownership in the region is highly concentrated, with over 85% of all the cryptocurrency holders located in six countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru.
Rankings Latam linked this high level of ownership to the economic difficulties and the lack of access to financial services that some of these countries experience. It stated:
Countries with high economic volatility or limited access to traditional financial services not only show high levels of ownership, but also drive the fastest growth, suggesting a deeper regional trend toward digital financial alternatives.
Julian Colombo, General Manager for Bitso Argentina, one of the largest Latam-focused crypto exchanges, states that Argentina is a special case for crypto given the distrust that citizens have towards fiat-led alternatives. “There is a structural element of distrust toward financial institutions, stemming from the corralito [currency controls], successive restrictions, and untimely regulatory changes,” he stated, pointing out that this naturally works in favor of crypto adoption.
The dynamism of the cryptocurrency market in Argentina is being studied by other nations, trying to understand how local regulation favors it. In July, a group of U.S. lawmakers traveled to the country and met with representatives of the national cryptocurrency ecosystem, examining the local tax treatment of crypto assets and the regulatory advances regarding stablecoins and exchanges.
Read more: US Lawmakers Travel to Argentina: Local Crypto Ecosystem Examined