Americas Markets Intelligence conducted a survey that found that Argentinians are keen to invest in cryptocurrencies. Data gleaned from the survey shows that more than one-tenth of Argentinians has made some type of cryptocurrency investment. 18.9% of those surveyed expressed an interest to purchase cryptocurrencies in future.
Argentina’s Crypto Adoption Booms
Americas Markets Intelligence recently released a report that showed significant growth in cryptocurrency adoption in Argentina. This survey was done last year via 400 smartphone users. It found that 12 of 100 Argentinians have invested in crypto over the past year. Although this may seem low, the number actually exceeds other South American statistics. Brazil achieved 7% adoption, Mexico had just 6%.
It also exceeded the Latam’s average adoption rate of 8.8%. The economic factors of Argentina, with its long history of inflation and restrictions monetary policy have influenced the adoption rate. The adoption rate in Argentina, however, is lower than the 16% in the U.S.
The Growth Factors
This study examined the reasons why Argentina’s growth was greater than South America’s. It found that there were three factors that could explain crypto’s boom in the Argentinian market and Latam Markets. First, the society’s high level of digitalization compared with their low levels of bank adoption. This is what the report says about:
The persistent mistrust in banks has slowed the development of digital technology and kept cash use at bay even though consumers are more comfortable using digital tools.
The inflation and high monetary volatility of the country are another important aspect. This makes cryptocurrency like bitcoin and Ethereum attractive investments and savings options, even though they can be highly volatile. Third, remittances. This is the 5.5% that Argentinians must pay in order to send or receive remittances. The convenience of using cryptocurrencies allows users to transfer their funds without incurring any fees.
Study also suggests potential for the growth of cryptocurrency as an investment product in the future. 18% stated they are interested in investing in cryptocurrency in the future and that it is something they’ve never tried before. These 54% said that their main benefit from cryptocurrencies was the ability to save money.
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