2 November 2024
Bitcoin Popularity Increase In Argentina Due To Ninth ‘Sovereign Default’
Argentina is facing a poor economic situation. The report also states that the country was unable to make the payment of $503 million which was due on Wednesday. Argentina's Minister of Economy Martín Guzmán said that the country will not be able to pay out any debts for the coming days and it faces the nation’s ninth sovereign default.
However, on the other side Bitcoin is getting popular day by day and gaining importance. As per the report of Arcane Research, Argentines have dropped down the all-time-high amount in Pesos for Bitcoin.
The amount of Peso deposited for Bitcoin has increased by 1028% from 2018 January. The bitcoin volume increase is recorded as 407 percent while in terms of USD the volume deposited had increased by 139 percent. The growth in Bitcoin volume leads to the rise of value for Bitcoin in Argentina.
The Central Bank wanted to strengthen its sovereign currency and as a result, they imposed restrictions on U.S dollar purchases back in 2019. However, the plan failed and the value of Bitcoin started increasing. Later, the Central Bank also restricted the public to buy bitcoins with credit cards. But these limitations didn’t stop the demand and utilization of Bitcoin in Argentina.
As per the media reports, the Central Bank of Argentina has come in the partnership with Bitcoin startup IOV Labs to establish a blockchain-based payments network.
On 21st April, the bank announced that they are testing a system that is based on a proof-of-concept for a permissioned blockchain network using RSK technology. This technology uses Bitcoin smart contracts to design and optimize the way central institutions handle bank payments.
This is proof that Bitcoin's popularity is leading higher authorities in Argentina to consider systems based around the digital asset, or at the very least, blockchain.
Soon we could see the increase in the number of crypto exchanges that share cryptocurrency trading prices live across the world.
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