Argentina is a record cryptocurrency adopter

According to a study by US magazine Forbes, using data from the firm SimilarWeb, Argentina has the highest cryptocurrency adoption rate of any country in the Western Hemisphere, when calculated by percentage of its population. Out of the 130 million visitors to 55 of the biggest cryptocurrency trading platforms in the world, some 2.5 million came from this country.

Most, it seems, are looking to save. “Argentina is an anomalous market where many people purchase USDT [shorthand for ‘Tether,’ a cryptocurrency that is pegged to the U.S. dollar] and don’t leave room for much more,” stated Maximiliano Hinz, Latin American head of crypto trading platform Bitget. “We don’t see this elsewhere. Argentines buy Tether in cash and do nothing with it.”

Argentina has established no regulations to reduce the risk in the use of stablecoins, such as Tether, which can seem like a perfect way of saving. On the other hand, cryptocurrencies linked to the greenback are consistent with the concept of dollarisation, but it is up to the user to find a secure way of buying them, keeping them and using them.

Strangely enough, Forbes informed that the most reliable trading platforms and markets in the works are not the options most used by Argentines. Perhaps for this reason, the same publication identified in its article about the 20 most reliable cryptocurrency trading platforms that none of the five main cryptocurrency suppliers in Argentina make the list, due to deficient internal controls and a lack of regulatory supervision.

On March 25 this year, the Argentine Securities and Exchange Commission (CNV) announced a registration requirement for “all those using website, social networks or other media, sending deals/ads to individuals residing in Argentina” and receiving funds by the use of technology. 

Up to June 20, the public register shows 48 firms, most of which are relatively small companies operating locally. Those most used by Argentines did not complete the CNV’s form.

“It’s extremely important to know who is selling you assets or who you’re trading with, since, even though there is an increasing number of clear regulations for cryptocurrencies with the CNV’s new regulation, there is still the possibility of cons or fraud, as was the case with FTX internationally or Zoe Cash in Argentina,” warned Matías Reyes, Country Manager of cryptocurrency platform TRUBIT, in conversation with Noticias.

“The handling of cryptocurrencies offers many opportunities, but it is important to take certain precautions, especially given the most common risks in the ecosystem. 

“Price volatility is one: cryptocurrencies are decentralised virtual assets, which means that the purchase and sales price is regulated automatically by supply and demand, even though there are some that keep their price stable, their liquidity in the market has to be reviewed,” the accountant and virtual finance expert specified.

These recommendations are supplemented with some of common knowledge, such as not forgetting passwords or not losing the keys giving access to assets.

“Argentina is trending in the use of cryptocurrencies due to several economic and social factors. The persistent inflation and devaluation of the Argentine peso have led citizens to find ways to preserve their capital, finding in cryptocurrencies an appealing alternative,” said Reyes.

“Besides, the limited accessibility to foreign currency has driven the use of cryptocurrencies as a saving method and protection against economic uncertainty,” he highlighted.

Asked which operations are required to convert cryptocurrencies into actual dollars in this country without losing value, Reyes answered: “In Argentina, with most exchanges you have the possibility of buying any virtual asset with digital dollars (USDT or USDC mostly) and vice versa, that is, exchanging a cryptocurrency for this stablecoin, combined with this, if users have a dollarised account, it can be transferred to their bank and withdrawn by any means authorised by the institution; for these transactions no monetary value is lost for the dollars, but there can be conversion fees.”

According to the expert, who has more than 15 years’ experience in the financial market, it is important to operate with cryptocurrency trading platforms with the most liquidity, and for that, he recommends reviewing the site CoinMarketCap, one of the major and most relevant websites in the ecosystem. It is also advisable to check that cryptocurrency trading platforms are regulated by the CNV, which allows for more transparency in transactions and prevents cons.

“Operating with cryptocurrencies or virtual assets is quite simple, although it is necessary to meet some requirements. Firstly, you have to be over 18 and pass the identity verification process (KYC), where you will be asked your National Identity Document (DNI). 

“If a transfer from a virtual bank account is required, there may be other requirements, but generally these are enough. Lastly, it is a good idea to know the basics on how cryptocurrencies work and the risks they carry, that way you can trade more confidently,” the specialist said.