The Argentine government recently seems to have partially halted the economic recession that has affected millions of inhabitants for decades. To escape the devaluation of the national currency and expand business opportunities, many Argentines have started to adopt cryptocurrencies as an investment or means of payment – and the current scenario for the sector is optimistic, according to Eduardo Terzakyan, Country Manager at Transfero.
Javier Milei, Argentina’s current president until December 2027, calls himself a “market anarchist.” Libertarians tend to be highly favorable to the presence of digital assets in the mainstream economy, advocating for minimal regulations to maintain the pace of innovation stemming from blockchain technology.
The ongoing economic deregulation process in Argentina can be beneficial to the crypto economy. This is because, for crypto regulation to be successful, flexible and personalized rules need to be implemented.
What’s Shaping the Crypto World in Argentina?
Terzakyan believes that cryptocurrency adoption in Argentina is not limited to macroeconomic decisions, as it’s part of a more complex context. “Our country ranks among the top 10 globally in crypto adoption. While factors such as inflation, multiple exchange rates, and volatility undoubtedly influence this trend, they are not the sole causes,” he says.
According to the Country Manager, not only are more businesses accepting digital assets as a means of payment, but more professionals are also receiving their payments through this new money. Part of this success is due to the development of user-friendly solutions:
“Argentina has a wealth of talent generating innovative solutions that simplify and make accessible the opportunities offered by the DeFi universe. By providing incredible user experiences, we see adoption growing year after year. Use cases are expanding—more businesses are accepting cryptocurrency payments, professionals are receiving payments in stablecoins, and usability and transactional capacity are advancing significantly.”
Rough Edges That Need Smoothing
Offering the best solutions tailored to each client, according to Terzakyan, is the sector’s biggest challenge. “It is crucial to align with various regulations and standards while delivering top-tier service. From my perspective, providing an outstanding user experience is fundamental to scaling operations,” he added.
At the end of the day, advanced technologies are an important piece for the economy to communicate with all social strata – but the synergy between them and people is key to ensuring everything is aligned globally.
Given that decentralized cryptocurrencies can be used anywhere in the world, certain universal standards are being developed. Even if each country has specific qualities and challenges, many common points collide, such as the search for anti-money laundering mechanisms, counter-terrorist financing, among others.
For example, the Brazilian government sought inspiration from some regulatory models in Switzerland, considered by many to be one of the greatest legal models involving crypto assets. Argentina, on the other hand, signed a pro-cryptocurrency agreement with El Salvador, the first country in the world to recognize Bitcoin as national currency.
This way, both countries will be able to exchange information for the supervision and regulation of companies that provide services within the new digital economy. These are called Virtual Asset Service Providers (VASPs).
Perspectives for the Crypto Future
When asked about Argentina’s crypto future over the next five years, Terzakyan showed enthusiasm:
“I believe the next five years will be marked by significant growth and consolidation. As regulation progresses, addressing shortcomings, amplifying positives, and promoting local talent creation, I am convinced that the ecosystem and adoption will experience tremendous growth. This will not be limited to local factors; globally, there is a clear trend toward greater adoption.”
Due to the collaborative work that countless countries have carried out, interoperability is facilitated. This means that businesses can be formed between different nations instantly, without absolutely necessary trusted intermediaries – which helps reduce the final cost of products and services to consumers.
“For example, we are all closely watching developments like the U.S. GENIUS Act, which will undoubtedly have an impact, much like the previously introduced MiCA regulation (European Union) and its implementation,” Terzakyan commented.
Institutional players are uniting with both common users and the government to ensure that the regulatory framework is as globally aligned as possible, not just locally.
Moderation is Key
Although many things need to change, the expert believes that changes should not occur drastically, but gradually. Small adjustments should be made, by both private and public initiatives, until a common ground is reached.
“I am convinced that we are in a unique moment, experiencing unprecedented rapid changes over recent years. While this is exciting, it carries a great responsibility to develop robust products within solid and up-to-date regulatory frameworks,” he added.
Clear rules, updated standards, and the construction of an integrated regulatory framework are the three pillars for the global economy to be consolidated. Fortunately, this movement is being observed by a good portion of countries, which are gradually maturing to “embrace” the crypto economy.
According to a Chainalysis report, Argentina surpassed Brazil in cryptocurrency transaction flow. The country has an average in terms of stablecoin transaction participation that is 17% higher than the global average.
If the Argentine government continues to conduct the agenda within current molds, it is expected that the country, like Brazil, will build a favorable hub for innovation and economic inclusion, given that both still suffer from millions of unbanked people.
