The economic crisis in Argentina is driving investors to buy Bitcoin in order to protect their wealth, pushing the cryptocurrency’s price higher in-turn.
In parallel, to satisfy the increasing demand, the first of twelve Bitcoin ATMs has already begun to operate in a Buenos Aires mall. The number of stores accepting Bitcoin also continues to rise.
Bitcoin Is a Safe-Haven During an Economic Crisis:
“Argentinians are moving in droves out of their peso and into a more stable currency, BTC. The numbers being witnessed by the markets in BTC are surging from Argentina.” And he adds, “The stability being offered by the virtual currency is far greater than the peso and Argentinians are moving in quickly.”
One of the wealthiest countries in Latin America, Argentina is once again undergoing a severe economic crisis. In April this year the peso started plunging against the dollar at an unexpected speed.
Most economists agree that the devaluation of the peso is due to investors’ doubts about the government’s ability to contain its unrelenting inflation and to minimize the effects of the U.S. Federal Reserve interest rate increases, which have strengthened the dollar all over the world.
Now, the Argentina year-over-year inflation rate reaches over 34%
Taylor: The Biggest Solution is Bitcoin
So far, the efforts of Argentina’s Central Bank to stabilize the peso have been to no avail. As a result, according to Mr. Taylor, the Central Bank is exploring the possibility of diversifying into Bitcoin,
The biggest solution is Bitcoin, or BTC-USD and, according to the data, Argentinians are buying large amounts. At the same time, the Argentinian Central Bank is considering diversifying their currency reserves into BTC.
The Central Bank has already eased regulations regarding ATMs in the country. This easing of regulations has facilitated the installation of ATMs processing cryptocurrencies.
On September 19th, 2018, Athena Bitcoin installed the first ATM designed to exchange the cryptocurrency in a mall, auguring that these machines will soon expand in Buenos Aires.