Argentina is investing in blockchain projects in an effort to stabilize its economics and bring jobs into their country. Buenos Aires needs to become a central hub in South America for blockchain technology. That’s why the country is putting 2 million dollars for the next 4 years into this market together with the help of crypto exchange Binance.
The Argentinian government is going to invest in blockchain startups that are backed by the venture division Binance Labs, part of cryptocurrency exchange Binance. The country announced on Wednesday that it will match investments up to $50.000 into every Argentinian blockchain project that receives funding from Binance Labs.
The Ministry of Production and Labour will invest in up to ten projects per year for the next four years. All these investments go through a company called Founders Lab.
Argentina made the 2 million dollar investment after Binance signed a contract that made Buenos Aires one of the hubs of the second season of the incubator program.
Blockchain projects are booming right now in the South American country, most due to inflation. The country has been hit by an inflation rate of 47 percent in 2018. Only North Korea (55%), Zimbabwe (57%) and Venezuela (2688670%) are performing worse.
Another country that has seen a major inflation in the past twelve months is for example Iran (39%), where the low energy prices and new government rules have opened up the market for crypto and blockchain. Turkey (19.7%) has also been in the news a lot, as its Turkish Lira lost 60% of its value. Even though this country hasn’t explicitly backed blockchain projects just yet.
Also published on Medium.