The fiat currency of Argentina, Peso, has been in a flux as of late and confidence in it has dropped to a record low. In this country, long seen as a bastion of prosperity and free market vitality, critics are asking what went wrong with the country’s financial sector.
In the wake of this dramatic decline in the peso’s prosperity, support for and usage of cryptocurrency has soared, as it continues to be seen as a more stable alternative to the fiat currency. Cryptolydian analyses this phenomenon in the land of tango dancing, beef and Eva Peron.
Financial woes in Argentina
The country’s economy started its dramatic decline in 2018, and like many other countries, this has only worsened due to the Covid-19 pandemic, reports Bitcoin.com.
As inflation grows, and the peso depreciates, Argentinians have been turning to cryptocurrency as a stable alternative for cross-border transactions. Having had a decades long battle with its fluctuating economy, analysts blame the dramatic low on an overvalued currency and borrowing on unproportionable scales.
To protect the value of their savings in the wake of record inflation levels, the people of Argentina have resorted to the digital asset schemes available. Paxful, a Bitcoin marketplace recently released a survey in which almost 70% of Argentinians proclaimed they had made use of investments in cryptocurrency, reports Bitcoin.com.
This comes in the wake of fellow Latin American countries like Brazil and Mexico seeing record usage of cryptocurrency programmes. The forecast seems that cryptocurrency’s popularity will continue to surge in the region, as financial systems around the world quake in the face of the global pandemic.
The developing world as a whole has seen sharp increases in the promulgation of crypto-friendly legislation, as well as popular usage as a safe alternative to ailing fiat currencies. BRICS countries have expressed support for more crypto friendly regimes to be introduced, and the African digital asset market continues to experience a boom.