Inflation in Argentina at 50% pushes the demand for cryptographic credit cards

The monetary situation in Argentina has become almost uncontrollable by the Central Bank and the financial authorities. The increase in the money supply is accompanied by the overall decline in the supply of goods caused by the COVID-19 pandemic and the related disruptions in the supply chain. The annual inflation rate in the country has reached 50%, causing panic among the local population. Since investments in real estate and gold are often problematic due to the low liquidity of such investments and the need to accumulate considerable financial reserves, bitcoin offers an optimal alternative. Individuals may be able to invest any amount of available funds in bitcoin or other cryptocurrencies. Furthermore, the highest standards of anonymity and pseudonym implies that they can actually escape any potential government restrictions or regulations. In this way, Argentines can ultimately become independent of their government's monetary policy. As an increasing number of people recognize the significant benefits associated with adopting cryptocurrencies, they tend to present a greater demand for financial solutions that can enable them to buy and hold BTC and other major cryptocurrencies.

Due to the fact that most people do not have the required experience in terms of working with crypto assets, they prefer to receive additional institutional support from other companies that can facilitate the adoption of cryptocurrencies on a daily basis. Since most ordinary Argentines are familiar with banking and related transactions, but unfamiliar with decentralized on-chain solutions, Lemon Cash, one of the most popular exchanges in the country, has decided to integrate traditional banking functionality into the increased demand. of bitcoin and other cryptocurrencies. The company offered the following technological solution: it provides its customers with Visa cards supported in bitcoin. In addition, the feature allows the imminent conversion of BTC into pesos when the user makes a payment in Argentina.

At the same time, the money is actually stored in BTC for the remainder of the period, making it protected from unprecedented inflation in the country. To encourage users to transition to the new alternative, the company is offering an additional 2% rebate in BTC. Initially, Lemon Cash had issued 100,000 cards, and all of them were adopted by citizens within the minimum time frame. As the growing number of people recognize the advantages of such BTC cards over any traditional fiat solution, the demand for Lemon Cash services has increased dramatically. The company says it plans to issue around 3 million additional cards this year. The deterioration of the monetary situation in Argentina indicates that all are likely to be bought and used intensively in the following months. A growing number of analysts recognize the financial disaster in Argentina that could reach the magnitude of that observed in Zimbabwe several years ago. The ever-growing money supply of fiat systems means that inflation inevitably occurs and, in periods of supply shock, it can reach a double-digit level. While the general population may be loyal to moderate inflation rates, uncontrolled inflation causes people to seek more sustainable alternatives. Overall, Argentina could become one of the global leaders in terms of bitcoin adoption in the following years. In this way, its residents can receive a number of unique long-term benefits in terms of inflation protection and the gradual appreciation of their savings. The Argentine government may also have to pursue more conservative policies to avoid the complete abolition of the peso by its citizens. The high adoption rate of bitcoin in Argentina can be important in promoting awareness of cryptocurrency and related opportunities among its residents and Latin America in general. The success of Lemon Cash may encourage other exchanges and companies to adopt similar policies and provide additional functionality for Argentines in terms of using cryptocurrencies both as a store of value and as a payment method on a daily basis. With the gradual advancement in people's awareness of cryptocurrencies and blockchains, they may be more successful in using all the tools available to manage their crypto assets, including those that do not require intermediaries such as exchanges or financial institutions.