Argentines continue to flock to Bitcoin as the country feels the effects of high inflation. The figures representing P2P Bitcoin trading in the country have been consistent over the past 12 months.
Bitcoin Trading Exploding in Argentina
The P2P Bitcoin trading volumes of Q4 2022 showed a marked increase over Q2 and Q3 2022. On top of this, with the way that trading is going, it looks like Q1 2023 will top the volume of Q4 2022. January and February each saw volumes of over 42.8 million Argentine pesos.
It’s not the record high, but there is a clear trend of volumes staying steady over the last few quarters. P2P Bitcoin trading is popular in the country and has been since 2019.
The biggest contributor to this is the economic condition of Argentina. The country has struggled over the past few years, and Argentines have turned to other means to protect their wealth.
Argentina Fighting High Levels of Inflation and Growing CPI
2023 has seen Argentines take to cryptocurrencies more enthusiastically than before. This time around, stablecoins are the primary choice for half of the population, according to a recent survey. About 17% of the population purchased crypto last year.
This increased interest in crypto results from high inflation and a growing Consumer Price Index (CPI). The peso lost almost 12% against the United States Dollar in January. Inflation has reached a whopping 99%, which does not bode well for the future.
Meanwhile, Coinbase’s Brian Armstrong has suggested that Argentina and Brazil use Bitcoin as a common currency. He received a lot of criticism for his opinion.
Government Working on Crypto Regulations
As Argentina faces these economic issues, it has also wrangled with cryptocurrency regulation. The government is considering mandating Proof-of-Solvency procedures for exchanges and custodians. The collapse of FTX sparked this requirement.
The National Securities Commission is also working on requirements and rules for crypto companies. As for the citizens who have taken to crypto amid all the economic turmoil, the government hopes that tax incentives will get them to reveal their holdings.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.