Tuesday, September 17, 2019

Inflation Growth Forces Argentines To Adopt Bitcoin

The acute hyperinflation that is ranging in Argentina has made its citizens to adopt the Bitcoin usage. The inflation which is at the highest level since 1992 persists after several efforts of the central bank of Argentina to salvage the economy.

Inflation and Bitcoin Adoption

In the last month, the central bank of Argentina has already tightened monetary policy three times. Despite these efforts, inflation in Argentina is at an all-time high since 1992. According to Bloomberg, “The inflation rate rose to almost 55 percent in March, with consumer prices rising 4.7 percent in the month, exceeding all of the forecasts in a Bloomberg survey of analysts.”

In response to acute inflation, there has been a massive adoption of Bitcoin usage in Argentina. According to a data of LocalBitcoins/coin.dance, the volume of Bitcoin trading in Argentina are reaching all-time highs.

The financial times noted that the Argentine suffers chronic inflation to the extent that no monetary measures seem to work. Financial times explained that “Argentina is trapped in a vicious circle. Demand of just a few million dollars in an illiquid market can weaken the peso, as has been the case since early March. Exchange rate depreciation leads quickly to increases in inflation, portfolio dollarization, and higher interest rates — now the central bank’s only means of defending the currency.”

Bitcoin Replacing Argentinean Pesos

Virtually, the economic situation has made Bitcoin a darling to most Argentines because it is inflation resistant. Hence, there has been advocacy to the government for greater integration of cryptocurrency into the economy.

At the moment, Bitcoin is already integrated into many business activities in the country. For example, in over 37 cities, users of public transportation are indirectly using Bitcoin to pay for their rides. Also, Bitcoin ATM is becoming more prevalent in Buenos Aires, the capital of Argentina.

Related Article:  PGA America Server Hacked, As Hacker Demands Bitcoin Ransome

Notably, the president of Argentina Mauricio Macri has shown interest in Bitcoin and its underlying technology, blockchain. In March 2019, the government announced a partnership with Binance labs, the blockchain technology incubator of Bitcoin exchange giant Binance. The government promised to match 1:1 Binance investment in the announcement.

Cryptocurrency Adoption

Cryptocurrency adoption in the emerging markets and the third world countries have been stimulated more by its use case than speculation which is prevalent in the developed economy.

This is evident in the rate of crypto adoption in Venezuela, Iran, Argentina among others in recent time. While Bitcoin adoption in Argentina is growing, it is still not vivid if the country will adopt a national cryptocurrency to overcome its economic woes.

In recent times, countries have been resulting to national crypto project to protect their economy.

More Articles

Blockchain Game Takes Center Stage As Gamers Can Now...

The world’s first blockchain based marketplace for trading in-game items, DMarket, is set to introduce its latest product to the virtual market. The ready...

Major Spanish Bank Issues €150 Million Loan Using Blockchain...

Banco Bilbao Vizcaya Argentaria (BBVA), one of the largest banks in Spain has successfully issued a €150 million loan using Blockchain Technology. The money...

Australia Partners IBM On A National Blockchain Project

The Australian government, through a major parastatal, is collaborating with technology giant, IBM in developing a National Blockchain project that will allow major firms...

U.S. Star Rapper, Eminem Sings Bitcoin Into Global Adoption

Eminem mention of Bitcoin in his new album "Kamikaze" boosts cryptocurrency, as awareness is key to the adoption and growth of cryptocurrency. Cryptocurrency Growth and...

Blockchain Race: Taiwan Healthcare Sector Hops Into Blockchain For...

Taiwan healthcare sector adopts blockchain technology for efficient management. The adoption brings the Taiwan health sector to join the list of countries that have...

South Korea Moves to Sideline Some Crypto Firms from...

Ministers in the South Korean cabinet have reached a consensus to exclude companies trading virtual currencies from the classification of venture business, a class...

Court Appoints Legal Counsel for Customers in Case Against...

The Supreme Court of Nova Scotia appointed Miller Thomson and Cox & Palmer, a Canadian law firm to be the legal counsel of customers in...

Jeremy Allaire Believes A Clearer Cryptocurrency Regulation Is Key...

The CEO of Circle, a Goldman Sachs-backed firm, Jeremy Allaire stated the clarity of regulations on Cryptocurrency from the US securities and exchange commission...

Goldman Sachs Lowers NVIDIA Rating Due To Crypto Woes

Goldman Sachs, one of the biggest financial institutions, has lowered the rating of NVIDIA. This means that their stock won't be so hot as...

Alibaba Cloud to Expand Beyond China into Global Markets

Alibaba Cloud, a subsidiary of the popular e-commerce giant, Alibaba Group, has revealed plans of its expansion per its choice blockchain service (Baas), outside...

Aviation Industry to Track Aircraft Parts Using Blockchain Technology

GI Aerospace is set to launch a platform that is based on Blockchain technology in the first quarter of 2019. TARA is its name,...

Kik Interactive Creates Its Own Cryptocurrrency Platform

Kik Interactive, a Canadian based company which offers chat-based support services, has launched its own cryptocurrency platform last June 27. The said platform is...

Latest Articles

Sygnum Becomes World’s First Licenced and Regulated Digital Asset...

Swiss-based Sygnum, a digital asset investment and solutions provider, has become one of the world's first licensed and regulated digital asset banks after receiving...

The Easiest Way to Pass Your Microsoft MCSA MD-100:...

If you try to think of things that don't use Information Technology in one way or another, it would be a very tough task....

Are Worries Over AI’s Effect on the Financial Jobs...

A recent study by Fountech has revealed that two-thirds of adults living in the UK are concerned that the Artificial Intelligence industry will leave...

Will Cryptocurrency Gambling Kill Land-Based Casinos?

It’s hard to deny that the internet has radically changed the gambling landscape. Sure, the common perception of gambling may still involve the glitz...

Why Some Financial Bubbles Are Necessary Economic Disasters

Microsoft 70-411 Exam: Everything You Need to Know

We can’t deny the fact that the world is moving towards the future faster than ever before. Not a day goes by that we...

Why US-based people can’t bet with bitcoins at online...

Online gambling using bitcoin has been happening since the time when cryptocurrency came into being. In the initial days, gamblers used to opt for...

Couple Pays For Breakfast Using Bitcoin, Community Finds This...

A Reddit user by the username u/portageco recently made a post in bitcoin's official subreddit. In his post, u/portageco boasts about how he paid...

Australian Woman Leads Adoption, Tours 10 Countries Spending Cryptocurrencies

Who says you can't go around the world spending cryptocurrencies? As many believe, cryptocurrencies are only good for speculations. But with a little research,...

Did A Physical Bitcoin Just Sell For $99k On...

As at the time of reporting, the listing on eBay had closed. This could be because the seller got a buyer or he decided...

Litecoin Now Approved In 30,000+ Stores

As cryptocurrencies gain ground, more and more technology-based firms find ways to incorporate the nascent technology into everyday life. Moon, prior to this time,...

How To Shop on Amazon with Bitcoin – Step-By-Step...

Wondered how to shop on Amazon with bitcoin? Then here's how you can purchase goods on one of the largest e-commerce websites that ships...