The people in Argentina are embracing cryptocurrencies like Bitcoin more than in any other country, why is this? (April 22, 2022)

For many cryptocurrency enthusiasts around the world, decentralized and digital currency is primarily about ideology or profit. But for many people in Argentina, it fills more basic needs. From sports stadiums to buses and highway billboards across Argentina. All are plastered with adverts for cryptocurrency exchanges, as the nation’s economic instability fuels one of the world’s biggest booms in digital money.

Almost all of the TV and radio hosts talk about investment options in digital coins, and a crypto exchange is currently one of the sponsors of the Argentina's biggest soccer cup. The number of companies paying their wages in digital money is up over 340%. The reason? Crypto payments are cheaper and faster, exchanges say.

So far it's still a minority, largely a young, male, tech-savvy, and relatively affluent part of the population. It's tech workers, not farmers, who are being paid in Bitcoin. "Today it's not a technology that everyone can access," says blockchain consultant Lucia Lizardo. But there are ways in which strong government intervention in the economy has helped cryptocurrency gain a footing in Argentina.

For example, it's relatively cheap to run an energy-guzzling Bitcoin mining operation, because the cost of electricity is kept relatively low. (Bitcoin mining is the process that creates new Bitcoin. It involves computers solving complicated maths problems. Solve the problem and you are awarded Bitcoin. It sounds simple but involves elaborate computer systems, requiring lots of electricity to run and cool them.)

And using ATM's to get your money? Three Argentine start-ups now offer debit cards for cryptocurrency based transactions. One of these companies, Lemon, was founded in a Patagonian town where now over 40% of shops already accept Bitcoin. So the society in Argentina is changing. And fast. As cryptocurrencies now slowly become part of normal life.

But the IMF is trying to stop cryptocurrencies from taking over in Argentina. The senate in the country seems to join them:

The Argentine Senate on Thursday night approved a debt deal of $45 billion with the International Monetary Fund (IMF) linked to an agreement that includes a provision discouraging the use of cryptocurrencies. The provision, entitled "Strengthening financial resilience" says: "To further safeguard financial stability, we are taking important steps to discourage the use of cryptocurrencies with a view to preventing money laundering, informality and disintermediation."

Of course, cryptocurrency is a trend that can not be stopped.

Sources: https://www.bbc.com/news/business-60912789 https://www.bloomberg.com/news/articles/2022-03-09/cryptocurrencies-prove-a-lifeline-in-argentina-s-chaotic-economy https://news.yahoo.com/why-argentina-embracing-cryptocurrency-230940587.html https://www.coindesk.com/policy/2022/03/18/argentine-congress-approves-imf-debt-deal-that-would-discourage-crypto-usage/