Last week, after inflation in Argentine peso, the price of Bitcoin (BTC) hit a record high in history as measured by the Argentine peso (ARS).

Inflation in Argentina Sends BTC Prices to a Historical High

According to the summarized price data tracked by Google's financial industry search, on April 18th, the rates for BTC and ARS exceeded 6.59 million ARS.

Since its peak, this proportion has been adjusted to approximately 6 million ARS, a decrease of 9%, but it has still risen by over 100% so far this year.

The growth of Bitcoin's sales market in Argentina is consistent with the continuous decline in ARS prices. For example, the price charged by trader when they bought US $1 from the black market on April 24 was as low as 460 ARS, more than twice the spot exchange rate of 220 ARS on the official website

FMyA, a consulting management company headquartered in the United States, emphasized that since 2019, Argentina's central bank reserves have decreased by half, possibly to $1.3 billion.

This increases the risk of further depreciation of the peso, which has plummeted by nearly 99% from its peak in the currency crisis of 330 ARS in 2018. This has led locals to search for a harbor for the soul of the US dollar, as the demand for the US dollar in the host country has increased, making it increasingly scarce.

In addition, Bitcoin and similar cryptocurrencies operating outside the management authority of the state and central banks are increasingly becoming substitutes. For example, data shows that Bitcoin's point-to-point weekly trading volume in Argentina reached a historic high of nearly $30 million in March at the Parksfire trading center.

In addition, a 2022 study found that nearly 60% of Argentinians firmly believe that Bitcoin has the strength to ensure the long-term value of their deposits. Coinbase, a popular cryptocurrency trading center in the United States, suggests that Bitcoin become the currency in circulation in Argentina.

Bitcoin is becoming increasingly popular in Argentina

Earlier in April, the Argentine regulatory body China National Association for Use Value (CNV) approved a futures index based on Bitcoin, which will be released at the Matba Rofex trading center in May. The derivative product is liquidated in pesos, which will allow qualified investors to touch the Bitcoin sales market.

Regarding: South America is fully prepared for cryptocurrencies - just integrate them with their payment information systems

In addition, a recent law proposed by the Ministry of Commerce stipulates that Chinese citizens apply for their holdings of cryptocurrencies and encourage them through tax incentives. In addition, in December 2022, a province in Argentina announced plans to issue a stable currency supported by the US dollar.