It comes as no surprise that an unstable economy results in people looking to the cryptocurrency market for better opportunities, as has been the case in Venezuela, Lebanon, and many African nations. The situation is similar in Argentina, which currently teeters on on the verge of an economic default.
In the last two years, the country has seen a surge in the adoption of cryptocurrency, as well as an increase in crypto mining, so enabled by the nations cheap electricity. A not insignificant contributor to the country’s adoption has been its unstable, devaluating local currency which has caused people to choose cryptocurrency savings over the Argentine peso.
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Cryptocurrency is actively being encouraged around the country – crypto exchange adverts cover the nation’s buildings, public transportation, and billboards. Workers in Argentina have often chosen to receive their salaries in cryptocurrency, which helps the country’s nationals evade exchange controls and extremely high inflation. Currently, Argentina ranks first in the world by number of workers paid in crypto, with a marked 340% increase over the last 12 months.
As Bloomberg further explained:
“If a company were to pay $1,000 through the banking system, the employee would receive about 109,000 pesos, at the official exchange rate. But if the worker instead got paid in a cryptocurrency, that could be changed at the unregulated parallel exchange rate for about 200,000 pesos - 83% more.”
“Crypto sweetens local wages,”
Matias Dajcz, the Global VP OTC at Ripio, a Latin American cryptocurrency company that offers blockchain services, told Bloomberg.
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