No surprise that an unstable economy resorts people into the cryptocurrency market for better opportunities. It happened in many African countries, Venezuela and Lebanon as well. The situation is similar in Argentina, as it’s on the verge of economic default.
In the last two years, the country has seen a surge in cryptocurrency adoption, as well as an increase in crypto mining, as the cheap electricity costs allow to do so. In addition, an unstable, devaluated local currency is making people choose cryptocurrencies over the Argentine peso.
Cryptocurrency is encouraged around the country – crypto exchange adverts cover the nation’s buildings, public transportation, and billboards. Workers in Argentina have been receiving their salaries in cryptocurrency, which helps evade exchange controls and extremely high inflation. Currently, Argentina ranks first in having the most workers paid in crypto, a 340% increase over the last 12 months.
As Bloomberg further explained:
“If a company were to pay $1,000 through the banking system, the employee would receive about 109,000 pesos, at the official exchange rate. But if the worker instead got paid in a cryptocurrency, 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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