- El Salvador made headlines in 2021 by granting legal payment status to Bitcoin. However, the adoption rate of Bitcoin in El Salvador is lagging behind that of Argentina.
- Puell claimed that the preference of the Salvadoran people for the US dollar and the volatility of Bitcoin’s price are the main reasons behind this cautious approach.
- Argentina’s relationship with Bitcoin is rapidly evolving. The inflation rates expected to reach 147% in 2023 are causing the Argentine people to seek alternatives to protect their assets.
Following El Salvador’s acceptance of Bitcoin as legal tender in 2021, adoption has increased, but Argentina has shown intense interest in Bitcoin in recent times.
Increasing Interest in Bitcoin in Argentina
The adoption rate of Bitcoin in El Salvador is lagging behind that of Argentina, as stated in a note sent to investors by Ark Invest research specialist David Puell on Monday.
El Salvador made headlines in 2021 by granting legal payment status to Bitcoin. However, according to Puell, the country’s adoption rate of cryptocurrency presents a complex picture.
Puell referred to comments made by Signum Growth Capital CEO Angela Dalton in a recent podcast with Ark. Dalton shared her observations from a trip to the Central American country and said the following;
“Awareness is high, but usage is still low… There is a general sense of pride that the Salvadoran population is an early adopter of new technologies.”
However, tourist spots like Bitcoin Beach in El Zonte are exceptions and demonstrate wider acceptance of digital currency – Dalton added.
Puell claimed that the preference of the Salvadoran people for the US dollar and the volatility of Bitcoin’s price are the main reasons behind this cautious approach. BTC, which was accepted as legal tender in 2001, has helped protect El Salvador from inflation problems that have affected its neighbors and has provided a more stable and reliable monetary system.
Meanwhile, Bitcoin has dropped by more than 20% after El Salvador passed the law recognizing Bitcoin as legal tender and has doubled in the previous period.
Rising Inflation in Argentina and Bitcoin-supporting Presidential Candidate
In contrast, Argentina’s relationship with Bitcoin is rapidly evolving, driven by economic challenges, according to Puell. The inflation rates expected to reach 147% in 2023 are causing the Argentine people to seek alternatives to protect their assets.
Argentina’s economic background has paved the way for Bitcoin-supporting libertarian Presidential candidate Javier Milei to gain political significance. Puell said that Milei’s victory in the country’s summer primaries on August 13th not only signals a potential change in Argentina’s economic policies but also caused a sharp increase in the price of Bitcoin, reaching up to 10.2 million Argentine pesos within 24 hours.
Puell added that if Milei wins the general election in October, both Bitcoin and the purchasing power of the Argentine people will greatly increase. Earlier this month, Binance received the green light to become El Salvador’s “first fully licensed” cryptocurrency exchange.
Bitcoin Adoption Rate in Argentina Leaves El Salvador Behind news was first published on CoinOtag.
