Economists had long argued that Argentina’s peso currency was exaggerated, and the government recognised that its value will go down. But it was surprising that the value will go down so rapidly as peso fell against the dollar in April, may be due to the investors doubts that the government may not be able to control the inflation and interest rate hikes by the U.S. Federal Reserve, which strengthened the dollar worldwide.
Due to this state of the economy, the Argentinian investors and ordinary people are exchanging their pesos for Bitcoin (BTC) $6722.70 +0.07%.
D.H. Taylor, who is a renowned economist and mathematician, said, “Argentinians are moving in large numbers 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 digital currency is far greater than the peso and Argentinians are moving in quickly.”
In April the Latin American country, Argentina, which was considered as one of the wealthiest at some time, was undergoing a severe economic crisis. The value of peso started to fall at an unexpected rate in April 2018
Economists believe that the devaluation of the peso is due to investors’ doubts about the government’s ability to contain its merciless inflation and to depreciate the effects of the U.S. Federal Reserve interest rate increases, which have strengthened the dollar all over the world.
The inflation rate in Argentina has reached upto 34%. So far, the efforts of Argentina’s Central Bank to stabilize the peso have been to no avail.
The Central Bank is exploring the possibility of broadening into Bitcoin in order to find ways to improve the circumstances. Taylor, throwing light on the central bank’s thought on adopting bitcoin, said 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 is taking initiative as the dynamic regulations have made it easier to facilitate the installation of ATMs processing cryptocurrencies. Athena Bitcoin, on September 19, installed the first ATM designed to exchange the cryptocurrency in a mall and
Indeed, according to Matias Goldenhorn, Athena Bitcoin Director for Latin America, 12 ATMs will soon be installed in the capital city. These units will operate with Bitcoin as well as other cryptocurrencies such as Litecoin, Ethereum, and Bitcoin Cash.
On the other hand, a variety of merchants are already accepting Bitcoin as payment. Taylor also highlights that “8,000 new Bitcoin pay stations are in convenience stores in Argentina.”