24hoursworld

Cryptocurrencies: they registered transactions for more than $93,000 in the last year

Cryptocurrencies: they registered transactions for more than $93,000 in the last year

Argentina today ranks 13th in the Global Cryptocurrency Adoption Index 2022 carried out by the company Chainalysis, based on data crossings of transfers settled in the main public block chains (blockchains) and their georeferencing on the Internet, which identify relevant activity with cryptocurrencies in 142 countries.

Although there are no official figures, since there is no single registry of users and the same person can open accounts on multiple platforms, various surveys and usage surveys indicate that at least 1 in 10 Argentine adults buys or bought cryptocurrencies at some time, so it is estimated that about 2.5 million people who operate cryptocurrencies in Argentina.

The paradox of the adoption of cryptocurrencies in Latin America occurs despite the collapse in its price -the total value of the market went from US$3 trillion in November 2021 to perforate US$800,000 million in June 2022-, and it is one of the few regions in the world in which the volume of operations grew in the last year, due to the greater adoption of users not for speculation but for protection against inflation.

In fact, the report indicates that between July 2021 and June 2022 the region received $562 billion in cryptocurrencies, 40% more than the same period last year, a much higher percentage than the rest of the world, where the level of use of cryptocurrencies even fell, especially in Eastern Europe and Asia.

In other words, more and more users choose to protect their savings through the crypto world, given the ease and speed with which they can operate, making calls stablecoins or stable cryptocurrencieswhich for the most part follow the value of the dollar (USDC, USDT and DAI are the best known).

“The Chainalysis data validates the two main conclusions that we have been mapping with AMI in the region: first, that economies in which the local currency is fragile adoption flourishes, Venezuela and Argentina are the main cases; and second, that economies with good regulatory support they also bite, like Brazil,” Ignacio Carballo, professor, researcher and consultant of “crypto and alternative finance” at American Market Intelligence (AMI), explained to Télam.

Another characteristic of the Argentine phenomenon is that, unlike the region and even the world, three out of four operations (75.3%) are carried out through centralized exchanges: companies that offer a platform through which users buy and sell cryptocurrencies, but not between peers, but through the company itself, while in the world the average reaches two out of three operations (66.3%) .

Today there are more than a dozen companies founded in Argentina that provide this service (Ripio, Lemon, Buenbit, Belo, Let’s Bit, Satoshi Tango, Argen BTC, Decrypto, among others) as well as international companies.

“There is no doubt that everything that has to do with the crypto industry – companies, technological development, cutting-edge innovation and others – has enormous potential. This is seen in the recognition of international players such as Vitalik Buterin (co-founder of Ethereum , who visited the country) and from companies such as Binance (the world’s leading crypto exchange), which launched its crypto card in Argentina rather than in another country, and from the recognition of local company developments such as Lemon, Ripio, Belo and others, which are quickly identified in the region,” said Carballo.

Among the relevant data of the report it can be deduced that, in Argentina, over 31% of retail crypto transaction volume comes from the sale of stablecoins, compared to just the 26% from Brazil and 18% from Mexico.

“Stablecoins are going to be the growth vehicle for crypto in the region. There is no attraction to crypto or technology, but a search for financial survival, that savings do not disappear to protect against inflation. The same thing happens in Africa, where it is increasingly being adopted as everyday use,” said Dan Cartolin, account executive for North and Latin America at Chainalysis.

For Juan José Méndez, CBO of the Argentine exchange Ripio, in the current context it is a bear market “although Bitcoin or Ethereum continue to have high demand on our platforms, stablecoins or “cryptodollars” gained a lot of ground this year.”

“In fact, for three consecutive months, Bitcoin fell against USDC (one of the main stablecoins, issued by the North American company Circle), the cryptocurrency with the highest buying and selling activity in Argentina and this month also in Brazil,” Méndez told Télam. on the behavior of its users in its company, one of the pioneers in the region and currently operating in Argentina, Brazil, Mexico, Colombia, Uruguay and Spain.

“The level of adoption that has been observed over the last few years in Latin America is very high, and it is occurring more and more in various industries and productive sectors, with a user profile that seeks above all to protect their assets,” he concluded.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts

Fuel and supergas prices remain unchanged

Fuel and supergas prices remain unchanged

He Ministry of Industry, Energy and Mining (MIEM) published the decision of Executive power to maintain fuel and supergas prices during April and throughout Uruguay,