My understanding, and I haven't been there in a while, but apparently Argentinians were using Bitcoin and other crypto's to store currency because the government had made it difficult to trade US dollars for Argentinian pesos. Even when I was there, a grey market existed for trading dollars. The gov't tried to keep very tight controls on exchange of currency.

However, recently Argentina has banned banks from converting crypto to pesos.

So, I think we can say that it was happening enough that the gov't took action. If it wasn't happening at all, they wouldn't have done anything.