In Latin America, Argentina is at the forefront of cryptocurrency use. In a report titled “Argentina Crypto Capital,” published by Lemon, a prominent exchange in the nation, it is stated that Argentines use four out of ten cryptocurrency apps in Latin America, and that over 70% of deposits made on the exchange are made using USDT, Tether’s stablecoin pegged to the dollar.
Lemon Report: Crypto Adoption in Argentina Exceeds Even Brazil
In Latin America, Argentina is the nation that is driving the use of cryptocurrencies. Four out of ten crypto apps in Latam are being used from Argentina, according to a recent analysis by Lemon, an Argentine cryptocurrency exchange that holds over 38% of the country’s crypto market.
In terms of received volumes, Argentina has even outpaced the Brazilian market. In cryptocurrency, Argentina received around $85.4 billion between June 2022 and July 2023.
According to Lemon, this behavior is related to the particular use of cryptocurrency that Argentines have, which is a result of the higher rates of depreciation and inflation that these tools’ users experience. According to the survey, the popularity of cryptocurrencies in Latam is driven by the need to exchange and save value in hard money in order to avoid the depreciation of local currencies.
For this reason, stablecoins accounted for 80% of all cryptocurrency purchases made in Argentina in 2023. Lemon discovered that in any of the supported chains, USDT—Tether’s dollar-pegged stablecoin—accounted for more than 70% of the deposits made through its platform in 2023. Moreover, at the end of 2023, 32.59% of the deposits in Lemon’s care were in USDT, compared to only 29.10% in BTC.
Lemon’s research aligns with the established conduct of the Brazilian market. The Brazilian Tax Authority announced in October that it may have “significant implications for the tax and regulatory scenario for cryptocurrencies in the country,” in reference to the “vertiginous growth” of stablecoin trade.
The adoption patterns in Latin America and Argentina are different from those in the United States, where a higher percentage of purchases of bitcoin and other cryptocurrencies are recorded. The research found that this suggests an investment or speculative purpose.
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