Crypto exchange Huobi is expanding to Argentina as cryptocurrencies gain acceptance in the region as a hedge against the infamous inflationary peso.
The company said in an announcement on Tuesday it has launched Huobi Argentina, a local exchange that will facilitate purchases of a range of cryptocurrencies with the Argentine peso.
Huobi also plans to open a fiat gateway for the exchange in October, enabling people to buy cryptocurrencies via credit cards, wire transfers and other commonly used payment methods in Argentina, including Mercadopago.
The exchange said the demand for cryptocurrency in Argentina is driven by the country’s openness to the nascent technology and the need to find an alternative to mitigate the risks caused by the peso devaluation.
Argentina ranks fourth in terms of the percentage of cryptocurrency adoption worldwide with 16 percent, according to a report by market data provider Statista. The report notes that Latin America has more crypto users than any other region percentage-wise.
“Argentina’s volatile economic situation, including the country’s newly imposed currency controls and rampant inflation, creates a flourishing environment for cryptocurrency adoption,” the exchange said.
Argentina recently imposed currency controls to stabilize the peso markets, restricting residents from purchasing foreign currencies.
“The increasing demand for crypto-related products and services makes Argentina a perfect entry point for Huobi to pursue larger projects in promoting cryptocurrency and blockchain to the market,” David Chen, senior business director at Huobi Cloud, said in the statement.
Huobi image via Shutterstock