Bitcoin is popular in Argentina. The two largest private banks in Argentina, Banco Galicia and Brubank, are therefore going to offer bitcoin to their customers. Last year, the president was positive about the possibilities of bitcoin, but the central bank and the IMF are against it. Meanwhile, the adoption continues in Argentina.

Argentina’s two largest private banks, Banco Galicia and Brubank, announced that they will offer bitcoin buying and selling to their customers, Bloomberg reported.

According to a statement from Banco Galicia, 60% of those surveyed had asked for it. “That motivated us to continue this project,” write Ariel Sanchez and Nicolas de Giovanni of Banco Galicia. “The youth is the group that asks for it the most.”

Inflation

For many Argentines, bitcoin is a way to escape the weak local economy. Argentina has been struggling for years with sky-high inflation, which recently even reached a record high of 55%. The population is suspicious and still remembers how, twenty years ago, during the collapse of the economy, bank accounts were frozen and funds were confiscated.

More and more Argentines are therefore discovering bitcoin. Inflation is limited, because the maximum amount of bitcoin is mathematically set at 21 million. With your own wallet, you also have bitcoin under your own management, so there are no dependencies or banking risks. “I trust maths and software more than I trust politicians,” Argentinian tour guide Jeronimo Ferrer told BBC News . “I think bitcoin should be a no-brainer for Argentines.”

Bitcoin is therefore quite popular in Argentina. In Chainalysis’ 2021 Global Crypto Adoption Index, Argentina is ranked 10th and according to research by Statista, the country is number 6.

President

The Argentinian government is not quite sure what to do with the growing popularity. President Alberto Fernandez was open to bitcoin in an interview last year. When asked if Argentina should follow El Salvador in embracing bitcoin, he responded: “I don’t want to talk myself out of it […] but there’s no reason to say no” . A little later he continued: “They say the advantage is that the inflationary effect is largely nullified.”

They say the advantage is that the inflationary effect is largely negated by President Alberto Fernandez

However, due to unfamiliarity with the technology, he was still unconvinced: “It’s a global debate and I must admit I approach the subject with caution. In my case there is caution because of how unfamiliar it is [to me], and because it is difficult to understanding is how the value materializes.”

Resistance

The Argentine central bank, however, is not in favour. Speaking at a conference, Chairman Miguel Pesce warned that ?ǣbitcoin is not a real financial asset and does not provide lasting returns.?ǥ According to him, the course is a result of confusion among ‘people with a lower level of information’. In September, he issued another warning, saying that bitcoin and other cryptocurrencies should be closely watched.

The IMF is also stepping up the pressure. After El Salvador recognized bitcoin as legal tender, the IMF stated that a cryptocurrency as a national currency is “one step too far”, citing risks of money laundering and risks to financial stability. In the case of Argentina, the IMF took it a step further: part of a new financing arrangement is a clause stating that the Argentine government will make efforts to discourage the use of cryptocurrencies.

Regulation

Still, it seems that bitcoin is getting a place in Argentine society. For example, regulations were drawn up last year that will become active this year, making bitcoin companies subject to tax and anti-money laundering regulations.

In the capital Buenos Aires, with a population of about 12 million in the metropolitan area, mayor Horacio Rodr?? guez ??Larreta also announced plans to accept bitcoin payments for taxes. Elsewhere in Argentina, the small village of Sorradino has started mining on a small scale to better cope with economic setbacks with the extra income.

Bitcoin is more popular in countries with high inflation. High inflation is a problem that Bitcoin does not have.