Fears of currency crisis contagion are spreading fast.
Venezuela, Turkey, Iran and Zimbabwe are all facing economic crises. Inflation has been crippling. As a result, many are turning to cryptocurrencies for value, and as a means of exchange. It’s only increasing the likelihood of further global adoption.
Venezuela Currency Crises
Venezuela, for example, has been quick to accept DASH thanks to hyper inflationary issues.
In fact, many are turning to cryptocurrencies as a way to store value as the bolívar’s exchange rate spirals far out of control. The most recent devaluation of the country’s currency is only likely to increase its adoption of Dash by a higher margin. All as inflation in the economically disastrous country approaches one million percent.
Facing U.S. sanctions, Iran’s rate of inflation recently jumped to 18%. As a result, the country announced plans for a state-run cryptocurrency. Apparently, a coin could be used as a valid form of currency to make payments between banks, as well as being used as a means for other local payments. It would also be used to allow for easier payments in and out of Iran.
Argentina for example is struggling, as investors fear Latin America’s third-largest economy will default on debt. The news comes not long after Argentina’s government requested a $50 billion loan from the International Monetary Fund (IMF). At the moment, the Argentine peso crashed to record lows, hitting 39 pesos against the U.S. dollar.
With prices now spiraling out of control, accompanies by falling currency, cryptocurrencies can help solve the problem.
With capital controls in the country, Bitcoin has seen substantial price increases on the Zimbabwean Golix Exchange.
With the Turkish lira under pressure, trading volume on Turkey’s cryptocurrency exchanged surged. That’s happening as many turn to cryptocurrencies because of the lira’s weakness, and because of political and financial turmoil. At the same time, many investors no longer trust fiat currencies.
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