Last week, Argentina's inflation figures were released. The interannual Consumer Price Index was at 78.5% and reached record levels. This makes Argentina second in Latam for high inflation. Prices rose almost 8% in August, putting it in the pocket of Argentines. Bitso's survey shows that this has led Argentines exploring cryptocurrencies to maintain their purchasing power through stablecoins.
Argentine Inflation Continues to Grow, Expected To Reach 100% This year
Some countries in Latam are facing inflation as a problem due to the economic downturn. Argentina is one of the largest economies in the region and its inflation levels are now affecting citizens' pockets. According to the most recent CPI report, prices increased by 7% MoM month-over-month. These numbers are second only to Venezuela's high inflation rate of over 100% YoY.
Prices for food and drinks rose 7.1% in August. Other items, such as clothing and appliances, saw a more dramatic increase. Inflation numbers reached 78.5% in August, which is the highest level since 1991. This was in a context of political and economic uncertainty. The country had three economy ministers within three months. The Argentine peso, one of the fiat currencies most affected by Latam's economic turmoil, has lost more than 25% against its official rate and nearly 50% when using the unofficial "blue” exchange rates as a reference.
Crypto thrives in Emerging Markets
The poor performance of Argentina's economy has led its citizens to look for other ways to protect their purchasing power from inflation. They have also begun to research stablecoins and cryptocurrencies, even in the face of the current low price trend. Chainalysis says that Argentina is not among the top 10 countries where cryptocurrency adoption has increased, but local studies show that this continues to be the case.
Bitso, a Mexican-based cryptocurrency exchange, conducted a survey to determine that there is high awareness about cryptocurrency assets in Argentina. A survey revealed that 83% of respondents are familiar with cryptocurrencies and almost 34% have specific knowledge.
Out of the 83% who are aware of cryptocurrency, 10% have or have crypto assets in their investment portfolios, and almost 23% want to acquire them in the near future. These investors are keen to have crypto assets and use them as fiat currencies. They also want to preserve their savings, even with inflation.
What do you think of the recent Argentina inflation numbers and crypto's popularity? Comment below.
By: Sergio Goschenko
Title: Argentine Inflation Skyrockets to Almost 80% YoY as Crypto Adoption Grows
Sourced From: news.bitcoin.com/argentine-inflation-skyrockets-to-almost-80-yoy-as-crypto-adoption-grows/
Published Date: Mon, 19 Sep 2022 11:30:10 +0000
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