Emerging markets have been beaten up in recent months.
All thanks to a mix of political instability, a strong U.S. dollar, and trade war fears.
Argentina’s peso, Turkey’s lira, and Indonesia’s rupiah have all hit new lows. And as they have, interest in cryptocurrencies have flourished.
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.
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).
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.
Now South Africa is seeing issues
Just last week, South Africa’s GDP sank for the second straight quarter, raising fears of a recession. As a result, interest in Bitcoin is growing thanks to economic woes. Even the country’s president Cyril Ramaphosa has argued for a single, digital currency for Africa.
“We will begin to interface with the idea and notion of a single currency, possibly even a digital currency, and it’s possible that a digital currency will precede a real single currency because it is easier than having a proper full currency,” he said, as quoted by Mail & Guardian.
While he didn’t specify a plan nor a timeline, he added:
“It may take time, it may take years, but it’s interesting that something that we never spoke about in the past, we are now talking about. Because people always had a sense of sovereignty around their own currency, feeling that their currency is about their sovereignty, their nationhood, but people are now thinking beyond the borders of their own nation.”
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