Digital currency in Argentina

While many countries are introducing their own digital currencies and, at the same time, tightening/banning the use of cryptocurrencies, Argentina, on the contrary, sees it as a solution to financial difficulties and is relatively conservative about its citizens' use of crypto.

The economic situation in Argentina and the role of cryptocurrency

Argentina has been facing high inflation for many years, and cryptocurrency has become a way for many to protect their savings. The constant devaluation of the national currency and strict currency restrictions are forcing citizens to look for alternatives. In these conditions, Bitcoin in Argentina and other digital assets often act as a “financial haven.”

Local and international exchanges, P2P platforms, and crypto services offer a wide range of ways to convert pesos into cryptocurrency. This gives the population access to the dollar value of assets without having to directly purchase cash dollars.

Government regulation of digital currency in Argentina

Argentine cryptocurrency regulation is still developing. Banco Central de la República Argentina (BCRA) publishes risk warnings, prohibits banks from conducting transactions with crypto assets, and reminds them that they are not legal tender.

The tax authority AFIP has established rules according to which income from cryptocurrency transactions is subject to taxation. These rules cover all taxes on cryptocurrency in Argentina.

The Securities Commission (CNV) has launched a registry of virtual asset service providers (PSAV), requiring crypto services to register and comply with KYC and AML requirements.

There are also discussions about launching Argentina's CBDC — the digital peso, which could increase the transparency of transactions and simplify payments.

Popular digital currencies in Argentina

There are three main areas of focus in the country: bitcoin, stablecoins, and altcoins.

Bitcoin in Argentina is used as a hedge against inflation and a tool for P2P transfers.

Stablecoins, mostly USDT, are popular for settlements and as an alternative to cash dollars, which plays into the hands of citizens in times of restrictions.

Altcoins are used less frequently, but their popularity is gradually growing thanks to the expansion of crypto services.

How Argentinians use digital currency

The use of crypto in Argentina is similar to other countries where it is not prohibited:

• Protecting savings from inflation — buying bitcoin in Argentinaand stablecoins.
• Making transfers and payments — using USDT transfers in Argentina in P2P trading.
• Trading and speculation on exchanges.
• Accepting payments in cryptocurrency by businesses.

Use in exchange trading.

Problems and risks in crypto

Among the main risks are high asset volatility, regulatory uncertainty, and fraud. In addition, there are technical risks, including loss of access to wallets and weak protection of some services. Tax and accounting issues also pose difficulties. After all, it is necessary to understand all of them in order to avoid penalties.

Prospects for blockchain in Argentina

Blockchain can be used in asset tokenization, logistics, digitization of public registries, and financial services. With the right balance between innovation and consumer protection, the technology has the potential to strengthen the economic infrastructure. Regulators are already taking steps in this direction by creating PSAV registries and considering bills on digital assets.

FAQ

What is the tax rate on cryptocurrency in Argentina?
It depends on the type of transaction and the taxpayer's status. Income from sales is taxed under Impuesto a las Ganancias, and cryptocurrency is accounted for in Bienes Personales.

Is cryptocurrency allowed in Argentina?
It is not prohibited, but it is not recognized as legal tender, as confirmed in statements by the BCRA.

Is Bitcoin available in Argentina?
Yes, it can be purchased through exchanges and P2P platforms, although banks do not conduct direct transactions.

What is the digital peso / CBDC Argentina?
It is a project for a digital version of the national currency, developed by the central bank.

Which stablecoins are popular in Argentina and why?
First and foremost, USDT, as it is pegged to the dollar and allows you to preserve the value of your assets.