Julian ColomboCEO of Bitso, analyzed in an exclusive interview with Scope, the present of the crypto market, its catalysts for 2025, Argentina’s dominant position in the use of stablecoins in the region and what could happen in the ecosystem after the imminent election in the US between Donald Trump and Kamala Harris.
Colombo also analyzed the magnet that Argentina became for the big players in the crypto industry and the current regulatory landscape of the ecosystem in the country, all of this, within the framework of LaBitconf, the most important conclave of the sector in the region and one of the most prominent in the world.
The market under the magnifying glass of Colombo
Journalist: What is the expectation of this event, what do you expect?
Julian Colombo: I think this is, without a doubt, one of the biggest events, if not the biggest we have in Argentina. First of all, it is a nice place to meet all the industry leaders, not only from the companies, but also from the user communities and the different projects that are going around. So we always like to participate and since our arrival in Argentina in 2020, we have been protagonists. It is a good time to talk with friends, clients, partners, competitors and colleagues. I also think that it is a good area to express messages, to be seen in the media, to be able to talk with you and that is what is working for us in the crypto world.
Q: What are the trends in the Argentine crypto market? Do you notice that with the drop in inflation the tendency to resort to stablecoins for another token changed?
JC: Look, without a doubt, our country is still very strong when it comes to stablecoins and the crypto dollar. We have seen that there was a combination of lower inflation plus an exchange rate that remained quite stable. On the other hand, the price of Bitcoin and other cryptocurrencies increased for much of the year. This caused some cryptocurrencies to begin to move that perhaps in 2023 had not been so active. But, without a doubt, what we see is that stablecoins were consolidated as the preferred asset for Argentines. Perhaps there is already a kind of culture where many collect their salary, exchange it for a crypto dollar and keep it until they have to spend. The purchase of other cryptocurrencies is made from the dollar in crypto. What we see is that the peso is not going directly to Bitcoin, but rather the peso is bought to a USDC or a USDT and then people buy crypto from the dollar positions. So, averaging this last quarter of the year, stablecoins continue to be the preferred currency of Argentines.
Q: How do you analyze that the presidential elections in the US could affect the cryptocurrency market considering the different positions that the two candidates have?
JC: I think we are all in a very optimistic period. In the sense that we have regulators that are going to change. Surely, the heads of the agencies, whoever wins, are going to have new regulators. So, there is optimism in the US to discuss the issue with new people. On the other hand, we arrived at the elections with a Bitcoin price almost at its maximum level, which generates a lot of optimism for what is to come. However, there are sectors of the industry that prefer one candidate to win, and others that prefer another to win. Beyond political preferences, the decisions made and the balance of power in that country’s Congress will be key to the future of crypto regulation, particularly the stablecoin issue.
Q: Do you think that a good future for Bitcoin is inherent to the candidate who wins?
JC: I think it is always very difficult to predict the price, but there is an optimistic expectation of the market regardless of who wins. We may see some short-term volatility factors, but I am very optimistic for the remainder of the year and particularly the beginning of next year.
Q: What do you think are the important catalysts for the crypto market looking to 2025?
JC: I think there are two or three. First, even though the US elections are next week, the new authorities will take power in January. This can affect the market depending on the regulations they issue. On the other hand, there are many ETFs around and assets that could have their stock exchange mechanism, such as Solana, which is already operating in Brazil. This will likely attract institutional investors to the crypto world. Finally, next year will be fundamental in terms of price. Although we try to stay away from price as the main variable, many enter or leave the crypto market based on price. The price behavior of Bitcoin and other large assets will influence crypto adoption.
Q: How is regulation progressing in Argentina?
JC: Deep down, we all have the same goal: that users who use crypto are protected. Users must know where they are transacting, the risks of the asset and have compensation mechanisms in case of problems with intermediaries. There is a feeling in the crypto community that is very against regulation. However, at Bitso, with our more than one and a half million clients in the country, we have a responsibility for them. It is logical that the State seeks to protect users. We have seen companies that do not have safeguards and that underlines the importance of proper regulation. We are in a process that has been going on since the middle of last year and I think it will end sometime next year. Our goal is to keep innovation working and to have incentives to create new technologies.
Q: Can we say that it is a good time for the crypto market in Argentina, with the push of the current Government, which is more pro-market?
JC: I think Argentina always has good crypto moments, not because of the governments. Argentina is a cradle of developers. The founders of cryptocurrencies such as USDC and USDT have lived here and highlight crypto use in the country. Chainalysis confirmed that we are the 15th country in crypto use worldwide. Having a constructive dialogue with political authorities adds to the ecosystem. If the State accompanies or at least does not interfere, we have everything to continue being a power in the crypto world.
Q: Why do you think Argentina attracts so many big players in the industry? What is the magnet, is the same thing happening in Vietnam or Turkey, which are at the top of the ranking of crypto use?
JC: 100%. The big players come because there is a market here. Economies in crisis, such as the Argentine peso and the Turkish lira, double the value of cryptocurrencies. They have international advantages and the use of stablecoins is crucial for savings and payments. It is a very attractive market for large companies. We arrived in Argentina in 2020 because we believe in its potential and the big players in the system are seeing it too.
Q: Any information you would like to share?
JC: We are very happy with our more than one and a half million users. This year, more than 1,700 clients are companies. This makes us happy because the use of crypto for businesses, not just individuals, is growing. We saw that entrepreneurs and CFOs are recognizing that crypto solves cash management problems, remittance transfers and salary payments. I think this trend will intensify next year.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
