Backfire in Argentina: Citizens Want BTC Over Peso Amid USD Crackdown

One of the biggest factors in the high adoption of crypto in the country is the high volatility of the Argentine peso.

In just the past five years, the value of the peso against the United States dollar has fallen by over 85%. The residents of the country have traditionally had little confidence in their currency, favoring to convert their spare pesos into relatively stable dollars.

Looking at the economic situation of Argentina, crypto bull Tim Draper advised the president of Argentina in March 2019 to legalize Bitcoin in order to improve the country's economic situation.

He counseled the president on crypto's potential to improve the devaluation of the Argentine peso and relieve the associated brain drain.

On Sept. 1, the Central Bank of Argentina had imposed restrictions on U.S. dollar purchases to revive the plunging peso.

We have seen it time and again in countries like India and China, where crypto trading volumes surge upward following a ban.

Nonprofit organizations Bitcoin Argentina and Bitcoin Americana launched an informational campaign called "Bitcoineta." It consisted of a Bitcoin-branded van, jointly purchased by the two organizations, that went around Argentina to spread basic knowledge about cryptocurrencies among local communities.

2018's edition of G-20, which was coincidently held in Argentina, mentioned crypto regulation.

"It's hard to fully know why that didn't happen, but my best guess is that the crypto regulation discussion got caught up in bureaucratic priorities. Unless the government, any government, really makes something a priority, other things just take precedence. I doubt there's specific intent around not regulating crypto, rather it's something they've just not gotten to yet."

If the government is serious about reducing their dependence on the U.S. dollar, it is becoming more apparent that they should embrace and understand crypto.