Coinbase Receives Approval to Launch Crypto Exchange in Argentina

Coinbase has been approved to operate its crypto exchange in Argentina after registering as a Virtual Asset Service Provider (VASP) with the National Securities Commission (CNV) of Argentina. This is a big deal for Coinbase as the region is in dire need of innovation and the crisis has actually pushed the region forward and crypto adoption seems almost inevitable.

Argentina Growing into a Key Crypto Market in Latin Americas

According to Chainalysis, Argentina receives more cryptocurrency than any other country in Latin America, $91 billion in crypto transactions between 2023 and 2024. This makes the region a must for global crypto companies including Coinbase. While the platform is looking to expand, Argentina is a promising market due to high crypto adoption rates and growing demand for alternatives to traditional financial systems.

Fabio Plein, Coinbase’s Director for the Americas, said in a company announcement that for Argentinians, crypto is not just about investment but a tool to regain financial independence, in the midst of the economic crisis.

Argentines Look for Alternative Ways to Overcome Crisis

Coinbase’s research shows that 87% of Argentines believe blockchain can improve their financial independence and 76% see cryptocurrency as a solution to inflation and high transaction fees. With over 5 million people using crypto regularly, Argentina is a top market for Coinbase’s crypto operations.

As for stablecoins, it makes up 61.8% of the crypto received, way above the global average of 44.7%. This is because of Argentina’s hyperinflation issues, many are turning to stablecoins as a way to protect their savings from the country’s economy. For example, Bitcoins transaction fees for $10,000 are high and avoided with the use of stablecoins.

Despite not being the most adopted, Argentina surpasses Brazil in crypto transactions volume and XRP partnership with Amazon and other initiatives makes Argentina an attractive market for big players like Coinbase.

Leveraging Blockchain Technology in Argentina

In addition to crypto adoption, Argentina is advancing its blockchain integration. In 2024, the city of Buenos Aires introduced Ethereum in the high school curriculum through a partnership with ETH Kipu organization, showing the country’s commitment to blockchain education.

Further solidifying its position as a blockchain hub, Buenos Aires launched a program using Ethereum’s layer-2 blockchain, ZKsync, to digitally register 3.6 million residents. These residents’ IDs are now accessible on mobile phones, showing how blockchain is being used in public services for efficiency.

Argentina as a Crypto Hotspot

With Coinbase getting approved to operate in Argentina, the exchange might be positioning itself as a top crypto exchange and can become a leader in cryptocurrency adoption in Latin America. The increasing use of stablecoins and blockchain integration reflects the Argentines’ approach to use digital finance as a safe haven in crisis. But it might lead to something more if everything goes right.

By focusing on crypto exchange services and crypto education, Coinbase might be laying the groundwork for a more robust and transparent crypto ecosystem in Argentina. As the country expands its blockchain initiatives including Ethereum and ZKsync and Coinbase pushes further education, Argentina’s crypto future now depends not only on those who hold but on those who want to use crypto on a daily basis, say, to pay for coffee.

Disclaimer

This article is for informational purposes only and does not constitute legal, financial or professional advice. All content is based on publicly available information and personal opinions. Readers are advised to seek professional guidance before making any decisions or taking any actions based on the material presented. The author and publisher assume no liability for any actions taken or not taken by the reader based on the information contained herein.