The cryptocurrency market in Argentina

Something that characterizes the effective expansion of cryptocurrencies in Latin America, is that its decentralized nature is an effective tool against the growth of inflation. An iconic case of the use of cryptocurrencies in LATAM to combat inflation is Argentina, which ended 2021 with a level of 50.09%.

Today, the presence of cryptocurrencies in Argentina is quite extensive, to the extent that it has become the third exchange rate in the country, joining the Argentine peso and the US dollar. There are provinces in the country that currently carry out their commercial operations almost 50%.

The significant growth of cryptocurrencies in America Latina, as well as its visible results in counteracting the effects of inflation, are reasons that have caught the attention of the Argentine government and the central bank, as a viable mechanism for regulating signs of inflation to both currencies that currently circulate in Argentina.

Igual que en  Perú  o Colombia, la regulación de las criptomonedas es actualmente un asunto que se encuentra en gestión, pero que es visto por con buena disposición. Particularmente, la regulación de los cripto activos en Argentina estará en línea con los protocolos del Grupo de Acción Financiera Internacional (GAFI)

In addition to regulation, the challenge of cryptocurrencies in Argentina is the same as in the rest of LATAM, and it is basically operational. Once financial operations with cryptocurrencies are recurrent, their adoption will be massive and permanent.

A regulation that is currently in force in Argentina is General Resolution 4614, which establishes that exchanges have the obligation to inform the AFIP about transactions made with cryptocurrencies and customer payroll.

The growth of cryptocurrencies in Argentina is very easy to explain, in fact, a decentralized currency has greater freedom to self-regulate and its value depends on the demand and the confidence of investors in it, in contrast to the loss of confidence of the Argentine population in its banks and even in the dollar, makes it easier to understand this phenomenon.

Is it convenient to launch a new cryptocurrency in Argentina?

In many ways, the launch of a new cryptocurrency in Latam is a challenge that offers various opportunities for growth. In Argentina, the advanced adoption and preliminary phase of regulation where the cryptocurrency sector is located, allows the launch of a new cryptocurrency to have interesting growth opportunities.

An advantage that cryptocurrencies have over FIAT currencies, but also a great challenge, is building trust. As there is no central body to regulate them, the growth of a cryptocurrency depends entirely on its credibility and the trust of its investors in it. In other words, for the launch of a cryptocurrency in Argentina, one of the main assets that will promote its growth is through building trust.

In order to consolidate a crypto project before its launch, it is important to never leave anything to chance. From the creation of the whitepaper, the design of a smart contract, to the dissemination strategy of a cryptocurrency for Latam, there is a methodical complexity that in Blue Manakin, is our specialty.