High inflation occurs due to a variety of reasons that are different for each country, but there are common points that can be recognized in all of them. The traditional foundations of the national economy are at least partially broken; this disrupts the goods production and supply as well as the financial and commercial currents. Therefore, the prices increase while the most frequently used means of exchange — the national currency — keeps losing value.
Since crypto does not exist in physical form and does not rely on traditional financial and other institutions, it can be one way of making the situation a bit easier by offering an alternative transaction system. The mission of crypto is to go beyond national and physical obstacles, serving the benefit of humanity as a whole. In high-inflation countries, crypto can serve as one of the bridges until the national economy is at a stable level. Here are some ways in which crypto can make a valuable contribution if internet and mobile networks are available.
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In some countries of South America, economic shocks occurred that caused the depreciation of national currencies and, as a result, hyperinflation. These states depend on the export of goods that are purchased in US dollars and euros. To reduce the impact of currency appreciation, the governments of these countries decided to use cryptocurrencies as a means of payment.
The rapidly depreciating national currency of Venezuela bolivar provokes an increase in demand for various cryptocurrencies among the population. The most common in this country is Dash. More than 3,000 companies use this altcoin as a means of payment.
Venezuela also released the world’s first national cryptocurrency Petro. With its help, the government plans to receive funds for exported oil bypassing US sanctions. In addition to the oil trade, the Venezuelan government proposes to use this coin as part of the Bolivarian Alliance of Peoples, which includes a dozen countries in Latin America. Ordinary entrepreneurs and residents of this country use digital currencies to circumvent economic restrictions.
If government plans for the use of cryptocurrencies pass with varying success, then for the population, the use of cryptocurrencies is a way out of a difficult economic situation.
Argentina is a leader in Bitcoin retail sales. The reason is the same as in Venezuela — long-term hyperinflation. There is the fastest growing bitcoin ATM market in the world. According to forecasts, the number of such devices in the country by the end of 2019 will exceed 2000, and their introduction, according to the government, will allow overcoming the negative consequences of hyperinflation.
After banning the use of bank cards to pay for a taxi by the Argentinean Uber, this system began to accept bitcoins. Also, thanks to the Alto Viaje service and the Latin American exchange Bitex, it has become possible to replenish the SUBE card, which is used to pay for travel by public transport.
For the countries of Latin America, a special cryptocurrency ApperCoin was developed. For payments with its help, just install a special application on your smartphone. A distinctive feature is the absence of a commission and the high speed of transactions (an average of 10 seconds). Some retailers offer up to 40% discounts on this cryptocurrency.
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