Binance’s new customer base grows due to inflation in Latin America

Rapid inflation has become the main reason for the popularity of cryptocurrencies in Latin American countries, so most of Binance's new customers are residents of Argentina, Brazil, and Mexico. Maximiliano Ginz, a top manager at Binance Latin America, explains that another significant factor is the historically strong dollar, which is pushing other fiat currencies out of emerging markets. «We see inflation rising all over the world. There is a realization that more and more people will consider cryptocurrencies, such as bitcoin, as a way to hedge against inflation,» — explains Ginz.

Numerous studies have shown that the introduction of cryptocurrencies is gaining popularity in countries where the majority of the population is not wealthy and does not have basic access to financial services. The Binance executive cites Argentina as an example. The country’s annual inflation rate has exceeded 90%, and the society is plagued by political chaos, unemployment, and poverty. Not surprisingly, Argentines make up the majority of Binance’s new customers. The list is followed by Brazilians and Mexicans, who are also facing significant economic problems within their countries.

By the way, Michael Saylor, the executive chairman of MicroStrategy, has repeatedly called BTC the best financial instrument in times of rapid inflation. Last year, he advised residents of Turkey (a country with a devalued fiat currency and a closed economy) to convert their lira into digital assets if they want to «prosper.»