The economic situation in Argentina in recent years has led to the population seeking innovative ways to handle their money. This has helped the country take a leading role in the cryptocurrency revolution that’s sweeping the planet. How has this occurred, and what further advances can we expect in the future?
A Way to Counter High Inflation and Currency Depreciation
With the benefit of hindsight, it was probably just a case of perfect timing for Argentina and Bitcoin (BTC). The first digital currency was launched in 2009, using an innovative deflationary model that is designed to make its value rise over time rather than fall like traditional fiat money. The process of mining new tokens gets progressively more difficult, which has led to the spectacular price increases seen since then.
While this model attracted the attention of many people across the planet, early BTC adoption was regarded as particularly attractive in those countries where the local currency was unstable or inflation rates were running sky-high. Although Europeans and North Americans were still looking at BTC as some sort of speculative asset, Argentines, Venezuelans, and others were wondering whether it could provide them with a way of escaping the crisis caused by the downward spiral their local money was in.
Argentina has suffered one of the world’s highest inflation rates in recent times. Earlier this year, it finally fell to under 100% for the first time in two years. In the years after Bitcoin was launched, the peso began to rapidly lose value as inflation climbed out of control, making Argentina one of the first countries to get the chance to try Bitcoin as a way to counter high inflation in a real-world setting. With the peso predicted to lose value again, this remains an effective way of hedging against high inflation.
New Ways to Use Crypto
With this incentive to use digital cash instead of pesos, Argentinians began to incorporate tokens into their lives, using them to carry out everyday transactions such as paying for goods and services or sending money abroad. The emergence of stablecoins proved to be another interesting advance for Argentina, as they give people the chance to hold digital dollars rather than having to buy physical dollars at a high price. This removes the volatility associated with tokens like BTC while allowing them to gain the advantages of cryptocurrency use.
As a third of Argentines use digital assets now, it’s no surprise to see new uses popping up all the time. Among them, it’s now possible to pay for public transport in Buenos Aires using Bitcoin and other cryptos, with crypto ATMs dotted across the sprawling capital providing a simple way to add or withdraw digital funds.
And it’s not just about the practical uses; BTC has hit the entertainment world too, changing its face and reimagining how we approach some of our favorite options. Casinos in particular have been keen to take on cryptocurrencies, with many online casino sites making it easy to play slots and table games using digital coins of many different kinds. With themed titles such as Lawless Ladies and Hooked on Fishing among the most popular online casino titles currently, this is a fast-growing sector that has become part of the mainstream entertainment industry in the last few years, with cryptocurrencies helping to make casinos more accessible for everybody – even those in regions where traditional banking services aren’t widely available.
The ease with which players can now access themed slots is one of the key reasons for this growth, showing us how using cryptocurrencies makes for a smoother and more secure deposit process. As well as Bitcoin, the Slots LV casino also accepts other popular tokens, including Ethereum, Litecoin, and Tether. The privacy of the blockchain adds another benefit that helps make this an increasingly common way of playing.
Bringing cryptos into this sort of space has helped them gain far more widespread acceptance, both in countries such as Argentina and further afield – and the more accepted they become, the easier it will be to use them. Casinos are certainly just one element of these currencies, but they’ve proved a key aspect of gaining mainstream acceptance.
A Flourishing Crypto Economy
When we cast our eyes across the planet, we can see that crypto has flourished in some countries more than others. Argentina is one of the countries leading the way, giving the sense that it could soon be established as a hub for new ideas and technology on the blockchain. When Coinbase announced its entry to the Argentine market this year, it confirmed that a staggering 87% of Argentinians believe that it’s possible to get a greater level of independence by using blockchain technology, with almost the same number comfortable with the idea of receiving their salaries in this way.
This summary of the rapid growth of the digital economy in Argentina points out that Bitcoin can now be used in various kinds of contracts and to make rental payments, leading to the belief that it could become the world’s first genuine crypto economy.
A growing number of blockchain startup companies are based here too, with Xcapit, Ripio, and Buenbit among the leading names. Many of these companies are dedicated to providing solutions that make it easier for people to make payments with crypto or exchange tokens.
The recent history of cryptocurrencies in Argentina makes us think that this country is going to remain at the forefront of the blockchain revolution. While this has largely meant regular people buying and selling tokens in the past, the scene appears to be set for this to become a growing part of the economy that opens up new opportunities.