a16z Reveals: Why Argentinians Buy Crypto as a Way to Buy Dollars? After the Crisis, Stablecoins Have Become a National Habit

Author: a16z crypto

Compiled by: Deep Tide TechFlow

Deep Tide Overview: Argentina is one of the highest markets for cryptocurrency adoption globally, but the real story worth noting goes beyond just inflation hedging. After the crisis eased, the usage of stablecoins did not decline; instead, it solidified into a habit. This is a crucial sample for understanding the stickiness of stablecoins in emerging markets, the trend towards dollarization, and the direction of payment sectors.

Where in the world are people using cryptocurrencies? How are they using them? Let's start with Argentina. One in five people there uses cryptocurrency, making it one of the highest percentages in Latin America.

This all happened very quickly. In 2024, the download volume of the top 15 crypto apps in Argentina nearly doubled, growing by 93% compared to the previous year.

The preference for the dollar among Argentinians predates cryptocurrency. Between 2001 and 2002, the government froze bank deposits and mandated the conversion of dollar deposits and loans into pesos through decree 214/2002. After the dollar peg ended, the exchange rate plummeted from 1 peso to 1 dollar to nearly 4 pesos, causing the dollar value of the peso to evaporate by about three-quarters. This crisis deepened distrust in the peso and reinforced the habit of keeping savings in physical dollars outside the banking system—such as stuffing money under mattresses or putting it in safes.

After the government reimposed foreign exchange controls in 2019, stablecoins began to gain traction in Argentina. Within months, the government limited the official monthly foreign exchange purchase quota for Argentinians to $200, with additional eligibility rules completely blocking many people out. Dollar-pegged stablecoins became an alternative way to hold dollars without relying on the official market.

Recently, the proportion of stablecoins in contractor salaries has been increasing. In April 2024, with a year-on-year inflation rate reaching 289%, the proportion of Argentine contractors being paid in USDC also rose.

The above data comes from Deel, a portfolio company of a16z that helps manage payroll in over 160 countries. Using this data as a benchmark, we can observe the changes in the proportion of Argentine contractors being paid in USDC and the year-on-year inflation rate.

Since both indicators are benchmarked to January 2024, we see relative changes from that point rather than raw values. For a period, the two indicators seemed to move in sync. Then inflation slowed, and the usage of stablecoins appeared to decline as well. As of July 2026, both remained at about one-fifth of their respective peaks.

In Argentina, using pesos to "buy cryptocurrency" means "buying dollars." 94% of cryptocurrency transactions in pesos flow into stablecoins—this is the highest proportion of stablecoins among all major currencies tracked by Artemis.

Interestingly, for several years, the price of crypto dollars was much higher than the dollars bought at the official exchange rate.

By 2023, capital controls in the country made it impossible for many Argentinians to buy official dollars, with the gap between the official exchange rate and the parallel market rate pushed above 100%. Stablecoins became an alternative option as they could be traded around the clock and were not affected by regulations. After Argentina lifted most restrictions on personal foreign exchange purchases in April 2025, the exchange rates of the two converged.

As of August 28, 2026, the price of a digital dollar was about 4% higher than that purchased through the official market.

Argentina's economic crisis seems to be easing for now. Inflation is down, purchasing dollars has become legal, and the initial pressures that drove many Argentinians to stablecoins have lessened. You might think that usage would decline as a result. But that is not the case.

The usage rate in salaries has not disappeared but has stabilized. The download volume of Lemon, one of Argentina's largest crypto wallets, has been climbing every quarter, even as the monthly inflation rate has dropped from 25.5% to 2.1%.

For Argentinians, stablecoins may no longer just be a tool for hedging against inflation—they may be becoming a habit.