Fears of a currency crisis contagion are spreading fast. Cryptocurrency might be the answer.
Venezuela, Turkey, and Iran are all facing economic crises. Inflation is crippling. Therefore, many are turning to cryptocurrencies for value, and as a means of exchange.
It’s only increasing the likelihood of further global adoption
Even Zimbabwe is experiencing one of the worst economic crises in years.
Back in 2008, inflation was up to 79,600,000,000%. That’s not a typo, by the way.
Now, the country is being crippled yet again. A new hyper inflationary nightmare is already forcing many to ration even the most basic necessities, like water and beer. Moreover, a short supply of medications isn’t helping the region either.
New Finance Minister Pushing for Cryptocurrency
It’s the key reason why finance minister, Mthuli Mcube says the country is encouraging banks to adopt cryptocurrencies. In September 2018, the minister noted, “Zimbabwe should be investing in and understanding innovations and often central banks are too slow in investing in these technologies. However, there are other countries which are moving faster. If you look at the Swiss central bank they are investing in- and understanding bitcoin,”
Zimbabwe isn’t the only country pushing for cryptocurrency.
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. Additionally, the most recent devaluation of the country’s currency is only likely to increase its adoption of Dash. All as inflation in the economically disastrous country approaches one million percent.
The country announced plans for a state-run cryptocurrency. Apparently, people will be able to use a coin as a valid form of currency to make payments between banks. Furthermore, they can use it as a means for other local payments. Additionally, it be used to allow for easier payments in and out of Iran.
Furthermore, as crises such as the one in Zimbabwe intensify, several countries look for wider adoption of cryptocurrency.
According to Donald Trump appointee, J. Christopher Giancarloat the US CFTC, “digital assets have the potential to assist troubled economies around the globe. In fact, he notes that more than 67% of global economics have currencies with little value. Cryptocurrency may be able to assist those countries, and keep them operational.
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