Por 4 mayo, 2022 No Comments

Even though Argentina is included in the top 10 countries with higher crypto adoption, as reported by Clarín, it is more expensive to buy crypto in our country as compared with others. This is partly due to the high demand connected to political and economic events, with a price difference of 5% between local and foreign crypto markets.

High inflation, foreign exchange controls, lack of legal safety, political swings, excessive taxation, high money printing, among others, are concerning issues that contributed to create an attractive crypto environment for Argentineans and cause the local “extra charge”. Anyway, 5% appears to be acceptable when the foreign exchange gap between the official and the blue dollar is around 100%.

Besides, the pesos must be converted into dollars (or into stable currencies) and, subsequently, into the target asset pretended to be bought. This double transaction plus the fact that the exchange rate pesos-stables (“crypto dollar”) does not have an official exchange rate (though it is quite similar to the Blue-Chip Swap rate in normal demand and supply periods) contribute to the price difference mentioned before.

As reported by iProUp after the PASO primaries, the crypto market is likely to be reactivated by the political and economic agenda. Specialists agree on a mechanism between volatile assets and stable currencies (when cryptoassets’ prices drop, traders and investors invest their money in stable currencies and those companies unable to offer other options are likely to lose many transactions).

This article also highlights the “crypto dollar” different rates in the different platforms (national, mixed and those platforms trading abroad). We’d like to point out that, even though arbitrage (the practice of buying in the cheapest market and selling in the most expensive one) is legal, in principle, some of the practices or transactions mentioned in the article are unlawful in spite of being habitual. We strongly recommend to seek financial advisory help before being engaged in this activity.

It is essential to take this first exchange rate into consideration (“crypto dollar” rate, with high fluctuation) in order to understand if we are paying an extra charge and the amount involved. As a general rule, to buy stablecoins or other crypto assets with Argentine pesos is more expensive than in the rest of the world. However, cryptocurrencies proved to be a lifeline for the Argentine chaotic economy and Argentina stands as a leader in crypto adoption and as a developer of the crypto community to which we proudly belong.

Diego J. Nunes


Estudio Nunes & Asoc.