Coinbase has received approval to launch its platform in Argentina after successfully registering as a Virtual Asset Service Provider (VASP) with Argentina’s National Securities Commission (CNV), according to a Jan. 28 announcement.
Fabio Plein, Coinbase’s Director for the Americas, highlighted that crypto “isn’t just an investment” for Argentinians but rather a necessity for regaining control over their financial futures.
This approval enables Coinbase to operate in the country, which the firm describes as a “promising market.”
According to research commissioned by Coinbase, 87% of Argentinians believe that blockchain technology can enhance financial independence, while 76% see crypto as a solution to combat inflation and high transaction costs.
Additionally, roughly 79% are open to receiving salaries or payments in crypto, and over 5 million Argentinians already use crypto daily.
Coinbase has appointed Matías Alberti as the head of its operations in Argentina to navigate the new market. Alberti’s experience includes leadership roles at Latin American firms like Buenbit and Clara, signaling expertise in the crypto market and in the region.
Plein remarked:
“Matías brings a wealth of experience and a deep understanding of the local market. We’re confident in his leadership as we work to bring crypto services to millions of Argentinians.”
Additionally, Coinbase is committed to financial literacy in Argentina. The company plans to roll out local educational initiatives to equip users with the knowledge needed to make informed decisions about crypto.
Coinbase’s educational push will give Argentinians the confidence to navigate opportunities and challenges in crypto, Plein added.
Stablecoin-focused market
Chainalysis’s “2024 Geography of Crypto Report” ranks Argentina as the 15th-largest country in terms of crypto adoption and the fourth-largest in Latin America.
Despite not leading in terms of crypto adoption, Argentina led the amount of crypto money received, surpassing $91 billion. The amount is even larger than Brazil’s, which is the largest economy in Latin America and the country with the best crypto adoption index in the region.
Notably, 61.8% of this amount is denominated in stablecoins, which puts Argentina way above the global average of 44.7%. The report pointed out that this is tied to the hyperinflation suffered by Argentinians, as stablecoin transactions under $10,000 accelerated in the country faster than any other asset type.
In addition to the amount received in crypto, Argentina is also making fundamental moves regarding blockchain technology. In August 2024, Ethereum became part of the high school curriculum in Buenos Aires through a partnership with the ETH Kipu organization.
The Argentinian capital also launched a program using Ethereum’s layer-2 blockchain, ZKsync, to register 3.6 million residents digitally. The residents’ IDs will be available on their mobile phones.
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