4 countries turning to cryptocurrencies
Blockchain never ceases to surprise us. This week’s updates are no less,
Crypto is making rounds globally and is being adopted at an increasing rate. As inflation is writing new history and grips international economies, crypto is being viewed as a hedge.
How inflationary crises are impelling crypto adoption across global emerging markets like the U.S.
The U.S. recently declared a 7% rise in consumer prices, making the highest inflation after 1981; it led to Bitcoin rallying 3.3%, roughly $44,000. The crypto investors felt a rush of temporary relief. However, the leading cryptocurrency in terms of market cap took a bumpy start to 2022. The Federal Reserve indicated and then established it would unroll the pandemic-based policies earlier than expected. With Brazil and Turkey, amongst others countries undergoing an abrupt drop in their currency, we’re diving into distinct manners that Bitcoin – formulated to endure inflation – has stepped within the global market oppressed by the supply chain problems and inflation.
- Brazil is experiencing inflation, and matters are getting worse. It has reached a staggering 10% and is accelerating steadily. Experts think the solution to inflation is cryptocurrency. Brazil’s second-largest city, Rio de Janeiro, has drafted a plan to invest 1% of its treasury in crypto. In collaboration with Miami Mayor Francis Suarez, a crypto advocate, mayor Eduardo Paes will announce the strategy; the plan might allow residents to do tax savings if paid in Crypto. In other news: The only stock exchange in the country is planning to enter crypto trading, and Brazil’s largest crypto exchange has shown a three-times growth in users since 2020. The exchange value is $11.4 billion in the U.S. due to citizens opting for stablecoins for a year.
- The Turks saw inflation of 36% at the end of 2021, and it wasn’t the only rise as locals are adopting Crypto. The Turkish lira is crashing at a record high speed against the dollar, and it has yielded more than half of its value since last year. The crypto exchange volume in the country went to a high, average of $1.8 billion/day in the fourth quarter of 2021. The trader in Turkey went one step ahead of BTC and is now investing in Tether, the largest dollar-pegged stablecoin. On December 21, 2021, the lira was solely responsible for 60% of Tether’s total trading volume by currency.
- Argentina, the country facing the highest inflation among significant economies, accepts crypto payments. The Lightning Network: Strike is helping the government with the Bitcoin payment app. It also helped El Salvador adopt Bitcoin as legal tender. The app was launched in Argentina last week. In December, the decision was taken after the former Argentine President met Vitalik Buterin, the co-founder of Ethereum, about how cryptocurrencies could boost business in the country. Lately, many surveys indicate that two-thirds of Argentines invested in crypto only to protect their savings.
- The biggest supermarket and banking chain in Mexico, Grupo Elektra, announced it would accept BTC payments. Businessmen have started buying and selling real estate in BTC. The most popular sale was made in the beachfront city of Tulum for a staggering 5.78 BTC (about $240,000). The deal was made by Latin American real estate company La Haus. There was a comment by the firm’s executive that the way houses are being bought is changing. It has been done digitally as people break geographical barriers, but now humans are breaking monetary boundaries.
Why It’s A Crucial Factor…
Cryptocurrencies such as Bitcoin, carrying an optimal supply of up to 21 million, were initially built to hold out inflation. However, the latest news backs cryptocurrency’s global journey and its inflation-hedge stance. A recent study on nine countries uncovers that roughly one-fourth of small-scale enterprises would adopt crypto by 2022, wherein Brazil leads the troop with 30%. Compared to the U.S. dollar, Bitcoin has soared 34% from Jan 2021. But its appreciation against Argentine’s peso is astonishing; a whopping 60%!