However, this analysis is shallow, since the phenomenon goes beyond the crisis. In fact, the experts consulted by Ambit They agree that the reason for the landing of these giants in the country is that Argentina is becoming the cryptographic beacon of the region thanks to high adoptiona high knowledge of society about the crypto market compared to other countries and a strong investment from different companies in the country due to the great use of the Blockchain technology.
Cryptocurrencies: what’s behind the interest of “exchanges”
Mauro Liberman, member of Crypster Club, explains in statements to this medium that, in 2023, due to the crisis, Argentina was the fifteenth country in the world with the highest adoption of cryptocurrencies. Trend that was confirmed in Crypster Club stores with a 16% growth in purchases using cryptos as a payment method.
In this economic and adoption context, Liberman maintains, large “exchanges” began to plan and accelerate their plans to enter the local market. According to the expert, in 2022, 52% of Crypster Club clients had already used crypto as a means of payment. “Today that percentage is 83%”.
However, Liberman highlights that the growth of customers who buy for the first time with digital money has decreased in recent months, “probably due to the economic crisis and the stability of the exchange market”.
For Matthias BronerHead of Growth at zkSyncmany of these “exchanges” bet on the change of Government, for this reason “of the agreement in the approach of freedom, which is very aligned with the principles of the ‘Blockchain’ movement”.
Broner also highlights, on the other hand, that there was strong investment from different companies in the country due to the great daily use of “Blockchain” technology. This, he explains, comes from different reasons: Part of it is due to inflation, which will remain high until “the State changes dramatically.”. Which results in the growing use of this technology to buy cryptocurrencies and have other alternatives to combat personal inflation.
Cryptocurrencies Bitcoin Argentina.jpg
coingap
In turn, andhe growing development of “Blockchain” in the country gave rise to numerous large-scale global projects. “The focus is on development, and a large part of the teams come from Argentina,” the expert says.
In his opinion, the reason why there are so many developers in Argentina is because, First of all there is a very strong emphasis on educationwhich has been maintained over time, and secondly, “many of the founders of ‘Blockchain’ companies and projects were raised during the playpen or at least they have a good memory of that financial concern that the country had.”
Thus, when the possibility arose of creating technology for financial purposes within the same system, “The opportunity opened for people to develop technologies that solve the problems they face every day.”. These new technologies include incentives and built-in financial mechanisms, which, for Broner, constitutes a significant advantage for Argentina.
What will happen to the national “exchanges”?
One might think that, as a result of the arrival of industry giants, the operations of some smaller brokers will be absorbed, as sometimes happens in traditional banking. However, The industry is broad and it seems that it is enough for everyone, boys, mediums and heavyweights.
Hernan Gonzalezof the NGO Bitcoin Argentinaindicates regarding the challenge that may arise for local “exchanges”, the landing of these colossi would be more of a competition, although he sees it as feasible.any merger or purchase of any”, he warns.
González highlights that there are already several Argentine platforms that also operate in other Latin American countries, “so they already have a significant user base.” But they also have an advantage: “They know exactly what the Argentine user needs in terms of products and services offered., something that I have seen some large platforms overlook, given the global characteristic they have.” It could be said that no one knows another Argentine better than an Argentinian.
For González, the arrival of large crypto players is very good news, since there will be a greater variety of platforms and the Argentine user will be able to choose from more options within the “custodial”.
As Broner rightly concludes, cryptocurrencies are just one aspect and one use casebut “Bockchain” technology is providing opportunities such as digital identity, the ability to make transactions between countries, an interoperability that has security and is encrypted to the baseand it also gives people the ability to interact with new systems, so Argentina is brandished as a global industry power, despite its adversities.
