Singapore-based cryptocurrency exchange Huobi has found a new landing point in South America. The second-largest crypto venue by trading volume is making inroads in Argentina as hyperinflation is turning locals to cryptocurrencies in search of a more stable store of value and means to transact.
Providing further details on this development, Huobi said its offering would include a fiat onramp for Argentine Peso (ARS) and a dedicated office with local resources. To cater to the upcoming traffic from this market, the crypto venue plans to offer localized products and customer services including a fiat gateway to trade a broad range of Peso to crypto trading pairs, which expects to launch next month.
“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,” said David Chen, Senior Business Director at Huobi Cloud.
The move will enable customers to buy cryptocurrencies using credit cards, wire transfers, and Argentine pesos deposits. The exchange goes further than local competitors by offering the ability to acquire its digital assets through Mercadopago, one of the most widely supported digital payment providers.
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Investors are turning to cryptocurrencies to store value
The document further notes that Huobi CEO Leon Li has previously met with high ranking officials in government to discuss expansion into the country as well blockchain’s role in accelerating Argentina’s economic development.
Overall, many investors are turning to cryptocurrencies as a way to store value, as the exchange rate of fiat currencies in many countries is spiraling out of control.
The Argentine economy has been mired by a sharp increase in inflation. The central bank tried to keep hyper prices in check through rate hikes, but to no avail and the Argentine peso lost half of its value this year.
Huobi Group has expanded rapidly in recent years, opening up exchanges in areas like Turkey, Japan, South Korea, Russia, and the United States. In addition to local branches, such as Huobi Argentina and Huobi (US), the exchange serves much of the rest of the world through its flagship exchange platform Huobi Global.
“There already exists a general consensus to break from a reliance on the local currency and banks, and with Huobi’s entrance into the market, it is a great opportunity to move the needle on blockchain and crypto adoption in Argentina,” said Carlos Banfi, CEO at Huobi Argentina.