It is no surprise that an unstable economy is drawing people to the cryptocurrency market for better opportunities. It also happened in many African countries, Venezuela and Lebanon. The situation is similar in Argentina, as it is on the brink of economic bankruptcy.
Over the past two years, the country has seen a surge in cryptocurrency adoption, as well as an increase in crypto mining, as cheap electricity costs make it possible. In addition, an unstable, devalued local currency makes people prefer cryptocurrencies over the Argentine peso.
Cryptocurrency is being encouraged across the country – crypto exchange ads cover the country’s buildings, public transportation, and billboards. Workers in Argentina receive their salaries in cryptocurrency, which helps to avoid exchange controls and extremely high inflation. Currently, Argentina ranks first with the most workers paid in crypto, up 340% over the past 12 months.
As Bloomberg further explained:
“If a company paid $1,000 through the banking system, the employee would receive approximately 109,000 pesos, at the official exchange rate. But if the employee was paid in a cryptocurrency instead, that could be changed at the unregulated parallel exchange rate for about 200,000 pesos – 83% more. “Crypto sweetens local wages,” Matias Dajcz told Bloomberg. He is the Global VP OTC at Ripio, a Latin American cryptocurrency company that offers blockchain services.
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