Last week, the Bitcoin price hit a record high in Argentine pesos (ARS) following persistent inflation in Argentina.
Argentina’s Inflation Pushes BTC Price to All-Time High
On April 18, the price of BTC in Argentina hit an all-time high as the BTC to ARS conversion rate surpassed 6.59 million ARS, according to aggregated price data from Google Finance.
Since the peak, the rate has adjusted to about 6 million ARS, down 9%, but still up more than 100% year-to-date.
BTC/ARS exchange rate at the moment
Bitcoin’s surge to all-time highs in markets in Argentina coincided with the continued devaluation of the ARS. As traders paid as low as 460 ARS to buy 1 USD from the black market on April 24 – more than double the official spot rate paying 220 ARS for 1 USD.
FMyAa consulting firm based in the United States, note that Argentina’s central bank reserves have halved to an estimated $1.3 billion since 2019.
That increased the risk devaluation of the peso moreover, which has fallen by almost 99% from the currency crisis peak of 330 ARS in 2018. That has prompted locals to seek shelter in the US Dollar, which has become scarce due to demand. domestic demand increases.
At the same time, Bitcoin and similar cryptocurrencies operating outside the spheres of government and central banks are increasingly emerging as alternatives. For example: data shows Bitcoin weekly peer-to-peer trading volume in Argentina hit a record high of nearly $30 million in March on the Paxful exchange.
In addition, a study in 2022 found that almost 60% of Argentines believe in Bitcoin’s ability to protect the value of their savings in the long run. Popular US crypto exchange Coinbase also Recommendations BTC becomes legal tender in Argentina.
Bitcoin gaining traction in Argentina
In early April, the Commission for National Values (CNV), Argentina’s securities regulator, approved Bitcoin-based index futures on the Matba Rofex exchange will launch in May. The derivative, settled in pesos, will give accredited investors exposure to the Bitcoin market.
Argentina is opening to accept bitcoin
In addition, a recent bill proposed by the Ministry of Economic Affairs required citizens to declare their crypto holdings and encourage them with tax benefits . In addition, in December 2022, a province of Argentina announced intends to issue a stablecoin backed by the US Dollar.
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