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Cryptocurrency adoption continues to rise around the world as users acquire digital funds for trading, investment, transactions, and remittances, among other use cases. But in many nations, crypto represents a lifeline, and is specifically acquired as a safeguard against financial uncertainty. From Argentina to Nigeria, people face uncertain economic conditions and devaluing national currencies, making it difficult to pay for everyday necessities, such as food and healthcare. Adding to these challenges, financial exclusion remains a significant barrier in regions where access to brick-and-mortar banks is limited, or banking requirements are difficult to meet. When faced with financial instability and uncertainty, many individuals around the world are turning to crypto and stablecoins as a safeguard against inflation and financial exclusion.
We took a closer read of The 2024 Geography of Crypto Report by Chainalysis to understand exactly how crypto and stablecoin are being used as an alternative to financial instability and uncertainty around the world.
Argentina leads Latin America in stablecoin adoption
Citizens in Argentina continue to face economic turmoil following decades of inflation and the devaluation of the Argentine peso (ARS). This has led them to seek alternatives for financial stability. In 2023, the country’s situation worsened as inflation rose to 143%, the peso losing significant value, and 40% of the population living below the poverty line. While newly elected President Javier Milei announced a 50% devaluation of the peso as part of what he called “shock therapy”, many Argentinians increasingly adopted USD-pegged stablecoins as a much more accessible and reliable alternative.
Data from a leading Latin American exchange has shown a strong correlation between the peso’s devaluation and rising stablecoin trading volumes. For example, when in mid-2023, the peso fell below $0.004, monthly stablecoin trading exceeded $1 million, and $10 million in December of the same year. Argentina is now the Latin American leader in stablecoin transactions at over 61.8%, as the population leverages crypto to counteract inflation and take control of their financial futures amid economic instability.
Nigeria chooses stablecoins in the face of economic uncertainty
Nigeria’s population faces similar economic instability and uncertainty, and has demonstrated the transformative potential of crypto and stablecoins in response to such challenges. According to The 2024 Geography of Crypto Report by Chainalysis, Nigeria is once again a leader in cryptocurrency adoption, ranking second globally on the crypto adoption index. Stablecoins have become integral to the country’s financial ecosystem, accounting for 40% of all stablecoin inflows in Sub-Saharan Africa, the highest in the region.
Their popularity among Nigerians can be attributed to their use for cross-border remittances, offering faster and more affordable alternatives to traditional banking and transfer rails, and as a safeguard against inflation and the national naira’s depreciation, which hit record lows in early 2024. Stablecoins topped the charts as the preferred medium for small- to medium-sized transactions in the first quarter of 2024, reflecting the trend in Argentina for using stablecoins to navigate financial instability.
Safe, private, cross-border crypto and stablecoin payments with ForumPay
As a crypto payment gateway, ForumPay provides a secure and private solution for cross-border crypto and stablecoin transactions, including remittances, aligned with the growing demand for financial safeguards in regions facing economic uncertainty. By offering instant price determination and protecting recipients from crypto volatility, ForumPay ensures that users can transact seamlessly across borders without the risks and inefficiencies often associated with traditional banking systems.
Our solution provides a valuable tool for individuals in countries such as Argentina and Nigeria, as seen above, where unstable currencies present significant challenges. ForumPay is compatible with all crypto wallets, and allows users to send a wide range of popular cryptocurrency or stablecoins without the hassles of conversion caused by traditional banking and transfer rails. Funds are sent instantly to the recipient’s dashboard and are deposited into their bank account the very next day, empowering individuals to make safe, private and cross-border transactions on their terms.
If you need to send or accept funds as cryptocurrency or stablecoin, book a meeting with our team of crypto payment experts to find out how. Alternatively, visit forumpay.com for more information.
