As Inflation Soars in Argentina, More People Turn to Crypto

English Sep 23, 2022

Argentina's sad inflation figures were released last week, with the inter-annual Consumer Price Index posting record levels of 78.5%.

The country now finds itself second only to Venezuela in Latin America in terms of high inflation, with prices rising more than 7% in the month of August alone, obliterating the purchasing power of Argentines.

According to research carried out by Bitso, this increase in inflation levels has made more Argentines look for solutions to protect their purchasing power, which has led them to cryptocurrencies.

The country's food and beverage prices rose 7.1% in August, while other items such as clothing and appliances rose even more sharply.  Accumulated inflation reached 78.5%, the highest in 20 years.

Amid a climate of economic and political uncertainty, with the country having three economy ministers in less than three months.  The Argentine peso has been one of the hardest hit fiat currencies in Latin America, losing more than 25% of its value against the dollar (official rate), and almost 50% if you consider unofficial exchange rates.

The poor performance of the Argentine economy has forced its citizens to explore alternative ways to maintain their purchasing power against inflation and to consider Bitcoin and stablecoins as alternative investments to the local currency.  And this trend should continue until confidence in the local economy is reestablished.

As the survey found, 83% of the population know cryptocurrencies, with almost 34% having specific knowledge about these tools.  And a remarkable number of over 10% have already owned or have cryptocurrencies as part of their investment portfolio, while nearly 23% wish to have them in the future.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.