Argentine Investors Turn to Bitcoin As Local Currency Drops
The central bank is also turning to bitcoin for diversification.
Bitcoin Purchase Soars Amid Economic Meltdown
Argentina is currently undergoing an economic crisis with a decline in the value of the local money. The crisis has forced investors and citizens to take immediate measures. They are now trading the local currency, pesos, for bitcoin.
According to economist D.H. Taylor, the move towards bitcoin is to have a more stable currency. Taylor said that the numbers towards bitcoin are rising at a rapid rate. He notes that stability offered by bitcoin if far much better compared to the pesos.
Taylor further provides evidence highlighted in the chart below. The chart indicates how Argentines are purchasing bitcoin on a weekly basis.
Argentina is considered one of the wealthiest country in South America. The economic crisis similar to the current one is not new. The current meltdown began in April this year when the peso began dropping in comparison with the dollar at an alarming rate.
Economic gurus all are in agreement that the decline of the peso is solely propelled by investors. They argue that investors are not sure about the government’s capability to contain the rising rate of inflation. Further doubts have been raised over Argentina’s ability to repel the impact of the US reserve interest rate in case it rises. The rates have been boosting the dollar globally.
The country’s main bank has been putting measures in place to revive the peso, but all has been in vain. Taylor notes that the bank might be looking towards bitcoin as a final solution. He claims that the bank is examining the possibility of using bitcoin for diversity.
More Bitcoin ATMs
Data provided shows that locals are buying bitcoins in large amounts. The central bank is also planning to diversify the currency store into bitcoin. In the move towards this direction, the bank has lowered the requirements needed to open cryptocurrency ATMs. The first bitcoin ATM was installed in a mall last week by Athena Bitcoin. The city of Buenos Aires is expected to witness more similar ATMs.
Matias Goldenhorn from Athena Bitcoin is on record stating that 12 more ATMs will be erected in Buenos Aires. The machines will accommodate bitcoin and other cryptos like BTCH.
Merchants are also coming on board. A number of entities are accepting by payments in bitcoin. Taylor added that about 8,000 bitcoin pay spots are in major entities across Argentina.