The adoption rate of Bitcoin in Argentina is increasing, with presidential candidate Javier Milei showing a positive attitude towards cryptocurrency.

According to a report from The Block, a report from Ark Invest indicates that while Bitcoin awareness is high in El Salvador, adoption remains low; meanwhile, surging inflation in Argentina and a presidential candidate supporting Bitcoin are driving adoption in the country.

The Adoption of Bitcoin in Argentina Amidst Rampant Inflation

Ark Invest analyst David Puell noted in a report that while Bitcoin is highly recognized in El Salvador, where people take pride in being early adopters of new technologies, its usage remains low outside of tourist areas like "Bitcoin Beach." Puell believes that Salvadorans' preference for the U.S. dollar and the volatility of Bitcoin prices are the main reasons behind this cautious approach.

In contrast, the relationship between Argentina and Bitcoin is rapidly evolving due to economic challenges. Argentina is facing a dilemma of rampant inflation, with the inflation rate expected to reach 147% in 2023. The Argentine peso (ARS) has devalued from 176 to 349 against the US dollar since the beginning of the year, almost halving in value. Citizens are seeking alternative solutions to protect their wealth.

Presidential Candidate Javier Milei Shows Positive Attitude Towards Cryptocurrency

Argentina's presidential election is set to take place in October this year. Javier Milei, a libertarian presidential candidate who supports Bitcoin, secured 30% of the votes in this month's public primaries, leading over the other two party candidates with 27% and 28%.

According to a report by CoinDesk, Milei previously stated:

The central bank is a scam, a mechanism that politicians use to deceive good people with inflation tax revenues. Bitcoin represents money returning to its original creators—the private sector.

Despite his positive stance on cryptocurrency, Milei does not advocate for the use of Bitcoin as legal tender in Argentina. Instead, he calls for economic "dollarization," which involves abolishing the peso and directly adopting the US dollar.

Ark Invest analyst David Puell believes that if Milei wins the presidential position in the October election, both Bitcoin and the purchasing power of the Argentine people will experience significant growth.

Javier Milei Involved in Crypto Scam Last Year

However, this libertarian presidential candidate was embroiled in a crypto scam last year. According to reports, Milei recommended CoinX on his IG platform in December last year, claiming that it could help Argentines profit from investments using pesos, dollars, or cryptocurrencies to combat inflation. However, this year, CoinX has stopped payments to investors and has been confirmed as a Ponzi scheme.