From Chaos to Crypto: The Crecimiento Movement Igniting Argentina

In the face of rising inflation and overwhelming debt, Argentina is embracing cryptocurrency as a means to revitalize its economy and spur development. With the United States stepping back from its prominent position in the crypto sphere, Argentina is taking advantage of this gap to assert itself.

The transformation at its core is driven by the Crecimiento movement, which brings together individuals who believe in cryptocurrencies, entrepreneurs, and innovators. Together, they aim for sustainable change in a crypto-centric society. With a newly elected President expressing curiosity about crypto’s capabilities, Crecimiento is leveraging cryptocurrency to restructure the economy, concentrating on areas such as payments, credit, real estate, and beyond.

Crecimiento’s daring aspiration is materializing at Aleph, a temporary metropolis in Buenos Aires that spans over a month. This unique city has attracted more than 2,000 Argentine and international entrepreneurs, innovators, investors, and policymakers to establish crypto startups and stimulate innovation.

Argentina’s economy

As an analyst, I find Argentina’s economic story to be one of dramatic differences. In the early part of the 20th century, it was among the world’s richest nations, boasting a per capita income that surpassed both Germany and France. However, the current situation presents a stark contrast, as Argentina struggles with the highest inflation rates globally and a depreciating peso, which undermines economic trust. To provide a clear picture, $100,000 worth of Argentine pesos from 1995 would be equivalent to approximately $310 today.

However, Argentina’s significant adoption of cryptocurrencies (ranked 4th worldwide), a vibrant crypto industry featuring firms such as OpenZeppelin, Ripio, and RSK, and a favorable political climate are coming together to establish Argentina as a pioneer in digital innovation.

In simpler terms, the widespread adoption of cryptocurrency among the people, combined with a government open to exploring financial advancements, places Argentina in a prime position to lead the way in establishing a cutting-edge crypto-driven landscape.

A testbed for crypto-powered transformation

Crypto currency originated during the 2008 financial crisis as a means to disperse control, moving away from conventional financial structures which can be obscure, centrally controlled, and susceptible to collapse.

In Argentina, where the economic and societal framework has excluded numerous individuals, cryptocurrencies serve as more than a monetary rescue; they provide a model for constructing a novel type of community. This presents an opportunity to reassess the functioning of communities, the allocation of opportunities, and the establishment of trust.

Argentina’s economic difficulties have sparked a surge in cryptocurrency exploration. Over one-third of the population utilizes cryptocurrencies for daily transactions, and the nation boasts the highest number of employees paid in cryptocurrency globally. Remarkably, more than half of the freelance sector in recent years has been fueled by cryptocurrencies.

As someone who has lived through the economic instability of my home country, I can attest to the transformative power of technology in reshaping our financial landscape. Argentina is a prime example of this, leveraging cryptocurrencies as a viable alternative to a broken and unstable financial system. It’s not just about numbers; these developments represent real people who have found practical solutions in decentralized finance (DeFi) platforms, stablecoins that combat inflation, on-chain tools offering mortgages, and access to credit. I’ve seen the struggles of my fellow Argentinians firsthand, and it’s heartening to see a brighter future emerging through this innovative technology.

Filling the U.S. regulatory void

In the context of U.S. regulations pushing crypto development and expertise overseas, a chance for global dominance in this field has presented itself. Certain economies have been swiftly taking advantage of this gap by launching initiatives tailored specifically for cryptocurrencies – such as Hub71 in Abu Dhabi, Crypto Valley in Zug, and Brazil’s Drex CBDC initiative. However, these actions remain independent at this point.

Under President Javier Milei, Argentina is embracing a broader strategy towards digital assets. This new approach is drawing foreign investment and doing away with laws regarding legal tender in order to encourage cryptocurrency usage. Notable changes, like approving the tokenization of certificates – which allows for the establishment of Limited Liability Companies solely through crypto, demonstrate this transition.

As a researcher, I’ve noticed a proactive approach from Argentina’s regulatory bodies like the CNV (Securities Commission), BCRA (Federal Reserve), and UIF (equivalent to US FinCEN) towards the cryptocurrency industry. Unlike in the U.S., these entities are working hand-in-hand to enhance clarity and smooth operations within the crypto sector.

A movement for economic rebirth

For several months, the primary team members behind Crecimiento have been diligently tackling problems and carrying out research with a focus on finding cryptocurrency-based resolutions for Argentina’s most challenging economic issues.

The objective is to transform sectors like lending, insurance, logistics, taxes, and digital identification by introducing groundbreaking products, enabling access for the next 10 million users through blockchain technology. This initiative also aims to foster Argentina’s startup community, as well as establish a regulatory structure that guarantees a stable environment for startups over the course of the next two decades.

Aleph: Pop Up City Catalysing Argentine Innovation

Crecimiento’s aspirations are getting a boost via Aleph, a one-month urban project that is converting Buenos Aires into the world’s hotspot for cutting-edge cryptocurrency innovation.

During the entire month of August, over 300 discussions, activities, hackathons, and barbecues (Asados) are taking place, each geared towards fostering the development of cryptocurrency solutions and promoting innovation.

67 promising startups reside in Aleph, carefully selected by Crecimiento. These startups, ranging from their earliest stages to Series A, are positioned to address Argentina’s most critical issues. Some of these projects aim to make housing rentals and RWAs accessible through blockchain technology, tokenize financial receivables, and develop new stablecoins that generate returns.

I’m fortunate to be part of this thriving crypto community, learning from trailblazers such as Demi Brener (OpenZeppelin) in Argentina, Seba Serrano (Ripio), Mariano Conti (Maker), Marcelo Cavazzoli (Lemon), and Santi Siri (Democracy Earth). On a global scale, I’m equally grateful for the insights of Juan Benet (Protocol Labs), Alex Gluchowski (ZKsync), and David Hoffman (Bankless). Together, we’re shaping the future of cryptocurrency.

1. Aleph has drawn worldwide acclaim, receiving commendation from figures such as Jorge Macri, Buenos Aires’ City Manager, and a notable cryptocurrency pioneer who described it as “a beacon of liberty for the globe.”

As an analyst, I’m excited to share that Aleph is pioneering advancements in the realm of decentralized identity credentials through QuarkID. Our native ERC-20 token MORFI, accepted by over 25 merchants, is just one aspect of this innovation. Beyond being recognized as a “Scientific, Technological, and Economic Interest” by Buenos Aires, Aleph transcends the label of a mere meetup. It serves as a vibrant hub, fostering startups, forging strategic partnerships, and propelling Crecimiento’s growth momentum.

Aleph pulsates with the vibrancy of a future that’s almost tangible. It seems as if Argentina’s cryptocurrency progress isn’t merely a prospect; it’s an irresistible tide, and the Crecimiento initiative is fueling a revolutionary change in thinking.

To establish itself as a leading force in the cryptocurrency world, Argentina requires the backing of its entire community. If you are convinced that cryptocurrencies can help build a more balanced society, then Argentina should be your destination of choice.

As a researcher, I want to emphasize that the opinions expressed within this analysis are mine alone, and they may not align with those held by CoinDesk, Inc., its owners, or its affiliates.