Argentina’s inflation figures were revealed last week, with the annual Consumer Price Index (CPI) recording a record high of 78.5%. This makes the country second only to Venezuela in Latam in terms of high inflation, with prices rising by nearly 8% in August, hitting the pockets of Argentines. OneAccording to a Bitso survey, this led Argentinians to explore cryptocurrencies as a way to maintain their purchasing power through stablecoins.
Argentina inflation continues to rise, expected to reach 100% this year
Inflation is becoming a major problem for several countries in Latam whose economies have been affected by the current recession. Argentina, one of the largest economies in the region, is currently facing raging inflation that is affecting people’s pockets. The most recent CPI report disclosure that prices have increased by 7% month-on-month (month-on-month), with these figures second only to Venezuela’s inflation, which has reached more than 100% year-on-year (vs. ).
Food and beverage prices rose 7.1% in August, while other items posted stronger gains, such as clothing and home appliances. The cumulative inflation figure hit 78.5%, the highest since 1991 amid economic and political uncertainty, with the country having three economy ministers in less than three months. The Argentine peso is one of the hardest hit fiat currencies in Latam, losing more than 25% against the dollar when considering the official rate and almost 50% of its value taking zero exchange rates. officially “blue” as a reference.
Cryptocurrencies thrive in emerging markets
The underperformance of the Argentine economy has led its citizens to explore alternative ways to maintain their purchasing power against inflation and to consider cryptocurrencies and stablecoins even in negative price trends. Currently. Although Argentina is no longer in the top 10 countries that accept cryptocurrencies the most, according to ChainalysisLocal studies confirm that adoption continues to grow.
Recently survey conducted by Bitso, a cryptocurrency exchange based in Mexico, says there is a high level of awareness of crypto assets in Argentina. The survey shows that 83% are aware of cryptocurrencies, with almost 34% having specific knowledge of these tools.
Additionally, of the 83% with crypto awareness, 10% already own or currently have crypto assets as part of their portfolio, while nearly 23% wish to have them in the future. future. The focus of these investors in owning cryptocurrency is to use it like they would use fiat currency and maintain their savings even with these inflationary numbers.
What do you think of the recent inflation figures in Argentina and the popularity of cryptocurrencies? Let us know in the comments section below.
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