Reasons for Argentine fury among exchanges
He arrived in the country OKX in March, Bit2me in April and BingX in May. All of them are major players in the crypto industry, and, as the media learned, there are several more giants who plan to start their activities in the country, which, by the way, already has a long list of national brokers for exchanging cryptocurrencies.
Given this panorama, the question arises, what is behind this interest in the Argentine crypto user that is driving the arrival of these colossi of the crypto industry in the country, what is the magnet? What role does the crisis play and what risk exists for the operation of national exchanges?
Argentina: The World’s Cryptocurrency Jewel
A source from the crypto world noted in “off” that although Argentina is in crisis, it manages to overcome differences with other countries in the region that are also suffering from similar situations. “Argentina is a good place to set up operations because people still have money to go into debt and pay or invest, and that doesn’t happen in Venezuela.“, he notes.
However, this analysis is superficial, since the phenomenon goes beyond the crisis. In fact, the experts consulted Volume They agree that the reason these giants landed in the country is because Argentina becomes the region’s cryptographic beacon thanks to widespread adoptionhigh public knowledge about the cryptocurrency market compared to other countries and strong investments from various companies in the country due to widespread use Blockchain technology.
Cryptocurrencies: what is behind the interest of “exchanges”
Mauro Lieberman, member of the Crypster Club, explains in statements to this publication that in 2023 due to the crisis Argentina has become the fifteenth country in the world with the highest level of cryptocurrency adoption. A trend that was confirmed in Crypster Club stores with a 16% increase in purchases using cryptocurrency as a payment method.
In this economic and adoption context, Lieberman argues: large “exchanges” began to plan and accelerate their plans to enter the local market. According to the expert, in 2022, 52% of Crypster Club clients have already used cryptocurrency as a means of payment. “Today this percentage is 83%.“
However, Lieberman emphasizes that the growth in the number of customers buying for the first time with digital money has decreased in recent months: “probably due to the economic crisis and the stability of the foreign exchange market“
For Matthias Bronerhead of growth department zkSyncMany of these “exchanges” are betting on a change of government for this reason of “agreement in the approach to freedom, which is very consistent with the principles of the Blockchain movement.“
On the other hand, Broner also highlights that various companies in the country have attracted significant investments due to the widespread use of Blockchain technology on a daily basis. According to him, this happens for various reasons: This is partly due to inflation, which will remain high until “the government changes fundamentally.”. Which is leading to the growing use of this technology to purchase cryptocurrencies and There are other alternatives to combat personal inflation.
Cryptocurrencies Bitcoin Argentina.jpg
coingup
In turn, andThe growing development of Blockchain in the country has given rise to many large-scale global projects. “The main focus is on development, and most of the teams come from Argentina,” says the expert.
In his opinion, the reason why there are so many property developers in Argentina is because: First of all, a lot of attention is paid to education.which has persisted over time, and secondly, “many founders of blockchain companies and projects grew up during playpen or at least they remember well the financial problems that the country had.”
Thus, when the opportunity arose to create technologies for financial purposes within one system, “The opportunity has opened up for people to develop technologies that solve the problems they face every day.” These new technologies include incentives and built-in financial mechanisms, which Broner believes represent a significant advantage for Argentina.
What will happen to national “exchanges”?
One might think that the arrival of industry giants would see some of the smaller brokers’ operations swallowed up, as sometimes happens in traditional banking. However, The industry is vast and there seems to be enough for everyone: boys, mediums and heavyweights.
Hernan Gonzalezbelonging NGO Bitcoin ArgentinaRegarding the problems that may arise for local “exchanges”, he indicates that landing these colossi will be more of a competition, although he considers this possible.any merger or purchase of any“, he warns.
Gonzalez emphasizes that there are already several Argentine platforms that also operate in other Latin American countries, “so they already have a significant user base.” But they also have an advantage: “They know exactly what the Argentine user needs in terms of products and services offered., which I’ve seen some of the larger platforms overlook given their global nature.” It can be said that no one knows another Argentine better than an Argentine.
For Gonzalez, the emergence of major crypto players is very good news, as there will be a greater variety of platforms and the Argentine user will be able to choose from more options within “guarded“
As Broner rightly concludes, cryptocurrencies are just one aspect and one use casebut Blockchain technology provides opportunities such as digital identification, the ability to make transactions between countries, compatibility that is secure and encrypted in the databaseand also gives people the opportunity to interact with new systems, so Argentina is considered a global industrial power despite its tribulations.