Latin America is quickly turning to cryptocurrencies for stability.
In Venezuela for example, hyper-inflationary issues have crippled the economy. As a result, the Dash coin has become popular. In fact, now more than 200 merchants accept it, including Subway and even Calvin Klein.
The region is even seeing thousands of wallets downloads every month.
“We are seeing tens of thousands of wallet downloads from the country each month,” Ryan Taylor, CEO of the Dash Core Group said, as quoted by Coin Journal. “Earlier this year, Venezuela became our number two market even ahead of China and Russia, which are of course huge into cryptocurrency right now.”
As the crisis intensifies, we’re likely to see even more merchants accept Dash.
Inflation Expected to Reach 1,000,000%
Things have taken a wild turn for the worse.
As inflation has worsened, president Nicolas Maduro announced several measures to help diffuse the situation. That’s included devaluing the bolivar by 95% and pegging it to the state-backed cryptocurrency. Neither has been a good move, though.
Unfortunately, the Petro cryptocurrency is a disaster. It’s actually making things worse.
Dash’s transaction fees are in pennies rather than running into dollars. In addition, confirmation times are seconds.
Latin America Currency Crisis Solved?
With the value of paper money decimated by inflation, it has destroyed purchasing power.
With prices now spiraling out of control, accompanies by falling currency valuations, cryptocurrencies can help solve the problem. That’s because it offers a bit more stability.
However, it’s not just Venezuela that’s turning to cryptocurrencies.
“We’re seeing this with Turkey right now. Ukraine, Argentina, these are countries with very high inflation rates with of 20-30% or something. 20-30%, we think is enough to get people to try something new. We’re going to try and be successful first in Venezuela before branching out to try this in other countries,” reports Business Insider.
Want the latest crypto news? Join our Telegram Channel