Still, while a growing number of Argentines are using bitcoin as an alternative store of value in a time of economic turbulence, the country has yet to see many merchants capitalize on digital currency’s rising popularity in the region.
BitPagos, the country’s leading bitcoin merchant processor, for example, reports it has enrolled just 600 merchants to date. By comparison, major US processors such as BitPay and Coinbase have each signed up more than 30,000 small and large businesses.
However, the narrative surrounding merchant bitcoin adoption in Latin America may be primed for change. One of the larger merchants now serving local bitcoin users is Avalancha, the newly launched online electronics and home goods store that on 7th August announced a partnership with local bitcoin payment processor BitPagos and Latin America-focused bitcoin exchange Bitex.la.
Speaking to CoinDesk, BitPagos CEO Sebastian Serrano indicated that he is optimistic that Avalancha will become the major merchant that inspires other online retailers to begin seriously considering both bitcoin and his company’s service.
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“I think it’s going to be a catalyst that is going to help us increase adoption even more. It has been covered in major newspapers and it’s going to be similar to Overstock in the effect internally for the online companies.”
Argentina’s Overstock moment
The comparison to Overstock, considered by many to be the first major retailer to enter the bitcoin ecosystem in January of this year, is a lofty one. Not only has the US-based company accepted bitcoin, but it has also become a visible leader in the space, exploring the ecosystem’s more experimental technologies and appearing at major bitcoin conferences.
Still, the comparison could hold merit due to the fact that overall bitcoin awareness in Argentina is low among merchants. Miguel Klurfan, CEO of Avalancha, told CoinDesk:
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“I think the average merchant is not fully aware of bitcoin. They probably heard about bitcoin but they certainly don’t have a clue of how it works and the benefits it might have for their business.”
Despite its relative newcomer status – Avalancha launched in May – Serrano believes the retailer has the right connections to become a major player in Argentina’s e-commerce market.
Avalancha is notably funded by Newsan Group, a leading manufacturer in Argentina, a significant connection that Serrano believes isn’t to be understated.
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“Argentina has very high restrictions for importing, so it’s very difficult to import anything. One way to import [products] is to assemble that product in the country. Newsan assembles Samsung products, laundry machines and more.”