Argentina’s inflation has risen rapidly to its highest level since 1992. Citizens of the country are increasingly paying attention to Bitcoin as an alternative.
The central bank of Argentina has already tightened monetary policy three times in the past month, and inflation is still growing – its level has reached almost 55%. Bloomberg notes:
“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.”
The unstable economic environment forces many traders and investors to focus on Bitcoin. Thus, BTC trading volumes in Argentina reached record highs, as evidenced by the latest LocalBitcoins data.
The fact that Bitcoin is resistant to inflation makes it especially attractive to residents of the country. Consequently, many consider cryptocurrency as a potential alternative. Some even demand from the government of Argentina greater integration of BTC into the country’s economy.
Bitcoin is already integrated into many activities. For example, from February of this year, the Sube National Contactless Smart Card (Sistema único de Boleto Electrónico), which is used to pay for public transport in Argentina, can be replenished with Bitcoins.
Most importantly, the presidential administration Mauricio Macri has already shown interest in bitcoin and blockchain. For example, in March 2019, the government announced a partnership with Binance Labs. The government has announced that it intends to invest in blockchain-startups in the early stages of development and supported by Binance cryptocurrency venture capital division.
In addition, in March this year, venture investor and well-known cryptocurrency enthusiast Tim Draper advised the Argentine President to legalize Bitcoin in order to improve the economic situation in the country.
Images via LocalBitcoins, Pixabay