Bitcoin, the most important and well-known cryptocurrency, was born out of the Global Financial Crisis (GFC) of 2008-2009. According to its proponents, in a context of institutional mistrust, cryptocurrencies emerged as part of a larger wave of criticism toward governments and banks. Recent works in International Political Economy (IPE) and political geography explore how financial crises have pushed the embrace of these alternative monetary tools to protect people’s incomes and facilitate payments in contexts of inflation and currency controls. Argentina is a notable case of the recent uptake in bitcoin and stablecoins as a consequence of major inflationary pressures and other distortions in the economy. Argentina reveals how cryptocurrencies are not just a response to crisis, but these tools also thrive in contexts of upheaval and distortions. Crypto-coins in Argentina serve as shortcuts to access US dollars, and as concealed channels to avoid government regulation, through exchanges and wallets –known as caves– that protect regular Argentines from the hardship of economic distortions. The businesses that promote cryptocurrencies leverage arbitrage, lean toward centralization and succeed in alliance with traditional financial institutions. Rather than being antithetical to banks and governments, as their promoters often argue, cryptocurrency businesses benefit from these institutions. Drawing on field research in Buenos Aires and interviews with Argentina’s booming cryptocurrency business sector, in this presentation, Dr. Rosales explains how cryptocurrencies expand in contexts of crisis and benefit from the institutions their proponents seemingly oppose.
About the Speaker
Dr. Antulio Rosales is an Assistant Professor, Department of Social Science, York University. His research agenda focuses on the political economy of cryptocurrencies, natural resource extraction and democracy, with a special focus on Latin America. His research has appeared in journals such as the Review of International Political Economy, Energy Research and Social Science, and Development and Change.
