Argentina still chooses crypto, despite high inflation and heightened regulation.
Sharon Beriro
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In a way, the state of crypto can be an indicator indicative of how much confidence people have in a nation’s monetary system. Lots of die-hard Bitcoin believers in a country? Chances are the population is leery of central banks - and worried about the effects of inflation on their life’s savings.
Enter Argentina, one of the countries with the highest rates of inflation in the world - currently hovering at close to . Yes, that’s correct: 100%. The nation is also one of the countries with the biggest population of crypto enthusiasts.
In this environment, digital currencies can be perceived as a safer bet than the peso. This popular enthusiasm for digital tokens has faced pushback from the country’s central bank. But ever since the crypto winter has stepped up volatility, and exchanges like FTX collapsed, many Argentinians likely feel squeezed: with fewer ‘safe’ places to protect their life savings from inflationary pressures.
Bloomberg’s Nacho Olivera Doll reported on a recent study by Buenos Aires-based Wunderman Thompson - it found that nearly two-thirds of the nation’s crypto investors use digital currencies as a way to protect their savings. He joins this episode to discuss.
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This podcast is produced by the Bloomberg Crypto Podcast team: Supervising producer: Vicki Vergolina, Senior Producer: Janet Babin, Producers: Sharon Beriro and Muhammad Farouk, Associate Producers: Mo Andam and Ty Butler. Sound Design/Engineer: Desta Wondirad.
