In a region where high inflation and currency depreciation erode wealth, and traditional banks and governments fail to provide stability, how are fintech innovations—such as stablecoins, neobanks, and fintech startups—reshaping the financial landscape in Argentina and across Latin America? 

One of the reasons I decided to study Economics was because I believed it would help me better understand what was happening in my country, Argentina. However, I quickly realized that no single economic model or theory can fully explain the economic decline that Argentina has experienced since the beginning of the 20th century, when it was once one of the wealthiest countries in the world with one of the most stable economies. In the 10 years following 1900, Argentina had the highest immigration to population ratio in the world. By 1913, Argentina was the world's 10th wealthiest state per capita. In the 1930s, however, Argentina’s economy began to deteriorate rapidly due to political instability. Successive governments have failed to encourage strategic investments, such as in agricultural production - one of Argentina’s most valuable natural resources.

This has led to ongoing and increasing inflation and currency depreciation, prompting Argentina, as well as much of Latin America, to reshape their entire financial landscape. Fintech innovations—such as stablecoins, neobanks, and fintech startups—are offering people alternative ways to manage wealth and hope to provide the kind of economic stability that traditional banks and governments have consistently failed to deliver.

The research by Simon Johnson, Daron Acemoglu, and James Robinson on how institutions shape societal outcomes and economic prosperity—work that earned them the 2024 Nobel Prize in Economics—provides a framework that explains many of the issues I explore in this article. Their research sheds light on the institutional weaknesses not only in Argentina but also across Latin America. A key insight from their work is that societies with weak rule of law and extractive institutions may offer short-term benefits for the people in power, but they ultimately stifle innovation and broader progress. In contrast, inclusive institutions are essential for fostering long-term, sustainable growth. On a personal note, I had the privilege of being a student of Simon Johnson’s at MIT Sloan, where his teachings helped deepen my understanding of these dynamics.