The top two private banks in Argentina confirmed that they will allow the purchase of cryptocurrencies. Banco Galicia — Argentina’s largest private bank by market value, and digital banking giant — Brubank SAU, both announced that they will facilitate the purchase of four digital assets — Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and Ripple (XRP).
According to Bloomberg, approximately 60% of respondents in a recent survey sought easy access to crypto through their respective banks in Argentina. Following the results of this poll, the manager of investment products, Ariel Sanchez noted that the survey motivated the bank “to push this project”. Furthermore, the senior product manager at Banco Galicia Nicolas de Giovanni added that “the youth is the group that asks for this the most.”
Why Is Argentina Rushing Crypto Adoption?
Chainalysis’ last year’s report ascertained Argentina’s leading role in global crypto adoption. The country secured the 10th position amongst the top 20 countries in Chainalysis 2021 Global Crypto Adoption Index.
The report also highlighted that Argentina’s crypto adoption is driven by rising inflation. As the Argentine peso loses value steadily over time, the country’s citizens begin to view crypto as a hedge against inflation.
BBC recently conducted an interview with the Argentine local, Jerónimo Ferrer who runs a walking tour called “Our local crazy economy & Bitcoin tour of Buenos Aires”, highlighting financial restrictions in the country. Ferrer is among several Argentine citizens who perceive Bitcoin as a valuable alternative to the “volatile and highly-controlled” Argentine peso.
Ferrer told the BBC that “when you have restrictions, you need tools for freedom”, claiming that he trusts “more mathematics and software” as opposed to politicians. Ferrer added that he believed “Bitcoin for Argentinians should be a no-brainer”.
In light of this, last month, the town of Sorradino in Argentina’s Santa Fe Province sought to begin crypto mining in an attempt to raise funds for infrastructural development. According to local news, Sorradino’s mayor Juan Pio Drovetta said they had already bought six graphics cards and planned on purchasing a mining rig soon to start crypto mining operations and further raise funds for rail infrastructure upgrade from it.
The mayor said, “We are not buying cryptocurrencies and looking to make a profit on a speculative move whereby we [either] win [or lose]. What we will be doing is generating cryptocurrencies, so we will always win.”