Amid Argentina's ongoing devaluation of its national currency, the Argentine peso (ARS), citizens are turning to Bitcoin as a means to preserve their savings. Over the past year, the ARS has depreciated significantly against the US dollar, plummeting from 0.0049 USD per ARS in March 2023 to its current value of 0.0012 USD. Consequently, Argentina has witnessed its highest demand for Bitcoin in nearly two years.

A recent report indicates that Lemon Cash, a local cryptocurrency exchange, observed nearly 35,000 customers in Argentina purchasing Bitcoin in the week leading up to March 10, 2024. This figure represents double the average weekly purchases compared to 2023. However, this trend is not exclusive to Lemon Cash, as other exchanges like Ripio and Belo are also experiencing similar surges in demand.

Interestingly, stablecoin purchases in Argentina have decreased from 70% to 60%, according to Manuel Beaudroi, CEO of digital wallet Belo. Beaudroi suggests that Bitcoin's recent price surge may be more enticing to users. Nonetheless, users continue to purchase stablecoins for pragmatic reasons, mainly for transactions. Belo has witnessed a tenfold increase in Bitcoin and Ether volumes in 2024 compared to the same period last year.

Despite potential interest in stablecoins, evidence suggests that Argentines prefer not to utilize well-known domestic exchanges for their purchases but instead turn to "crypto caves," or black market exchanges, to circumvent stringent currency controls and the escalating inflation of the ARS.

Furthermore, cryptocurrency usage in Argentina is gradually becoming more commonplace as the government becomes more accepting. In December 2023, Foreign Affairs Minister Diana Mondino announced that a decree on economic reform and deregulation could permit certain conditions for using Bitcoin and other cryptocurrencies in the country. Following this announcement, a landlord and tenant in Rosario, Argentina's third largest city, reached an agreement to settle rent payments in Bitcoin.