Javier Milei, the newly-elected president of Argentina, is imposing shock measures to stabilize the Argentine peso, which noticed a 211% inflation price in 2023. In response, some Argentinians are turning to bitcoin to defend their financial savings from these financial pressures.

The Argentinian crypto alternate Lemon simply noticed its highest week of bitcoin purchases since 2022, in accordance with knowledge the corporate shared with Blockworks. This comes quickly after bitcoin surged to an all-time excessive in value. Bitcoin (BTC) is at present buying and selling for roughly $70,000, greater than double or triple what it was buying and selling for within the doldrums of 2023. 

Lemon has been a go-to for a lot of crypto-curious in Argentina, the place Coinbase isn’t accessible, and the place Binance solely started operations lately. Blockworks spoke with Maxi Raimondi, Lemon’s chief monetary officer, about his notion on Argentina’s flight to bitcoin. 

Maintain studying for excerpts from Blockworks’ interview. 


Blockworks: Have you ever seen that extra of your purchasers are excited about getting publicity to bitcoin slightly than to simply the US greenback by way of stablecoins?

Learn extra: Stablecoins are ‘a greater product’ than native currencies in rising economies, Carrica says

Raimondi: Sure. Having this inflation price, individuals work 30 days and they’re amassing their wage on the final day of the month or the primary day of the month. Over the past interval, we had inflation of about 30% per thirty days. So on the very starting [of the month], a number of Argentinians are transferring to stablecoins so as to take cowl from that inflation and devaluation and to safe their very own financial savings.

However we noticed within the final month that lots of people are additionally transferring into bitcoin. The explanation could also be due to the bull market, possibly due to a number of information in regards to the halving, possibly due to what’s occurring within the US with the ETF. We had an all-time excessive throughout February of about 40,000 weekly transactions of individuals keen to accumulate bitcoins.

[Editor’s note: Lemon later shared internal data confirming this figure, and showed that stablecoins now account for just 67% of Lemon’s volume, down from 86% in October.]

Blockworks: Has it been a problem being a fiat off-ramp in Argentina, the place the forex is devaluing so rapidly that if I pay you in pesos for some quantity of crypto, the pesos may very well be price some proportion much less a month later?

Raimondi: It’s fairly a problem to be a fintech proper now in Argentina, however for us and the individuals in Argentina, it’s actually what we’re used to.

You recognize, I bear in mind prior to now when hyperinflation came about in Argentina. I bear in mind my dad and mom amassing their wage and going out to the grocery store the identical day. And I bear in mind seeing queues and queues of individuals shopping for on the grocery store simply to cowl from the devaluation. And proper now I don’t see these sorts of issues occur, as a result of the individuals have entry to other forms of protection corresponding to what we offer.

Learn extra: Binance opens Argentina fiat on-ramps as inflation hits 100%

Blockworks: With all of those new purchasers buying bitcoin, I’m simply curious, amid all of the inflation, are individuals simply shopping for their crypto and holding it or are they really utilizing it via Lemon’s funds rails? 

Raimondi: If individuals purchase crypto [like] bitcoin, it’s actually laborious to see them promoting their bitcoin. Nevertheless, if they are going to purchase stablecoins — corresponding to USDC or USDT, or DAI, no matter — they promote these [cryptocurrencies] so as to pay for his or her payments or [use] the cost service that we do have. 

Blockworks: If inflation will get introduced underneath management in Argentina with a number of the shock measures being applied, do you foresee demand for crypto happening? What’s Lemon’s plan to outlive a possible reversal of the power of the peso?

Raimondi: Now we have been fascinated about that rather a lot. Not simply Lemon, however the entire ecosystem could take successful, however the persons are every day utilizing increasingly of this sort of fintech, not solely as a result of they will function in Argentina, but in addition as a result of they will switch cross-border utilizing the cryptocurrency. Individuals could not have one other various apart from the stablecoin to dollarize them.

Learn extra: Argentina elects pro-Bitcoin president Javier Milei

Month after month we see extra individuals stepping into the fintech area, though they know that the economic system could unify the alternate price within the close to future. We see a possibility in changing into a principal fintech as an alternative of struggling towards a conventional financial institution, and we see extra individuals stepping into fintech and leaving conventional banks. 

This interview has been edited for brevity and readability.


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