Bitcoin trading activity in South America is still on the rise with Argentina and Venezuela seeing new weekly volume records.
With the coronavirus pandemic exacerbating the economic situations in different countries, people are moving increasingly towards hard money assets like Bitcoin (BTC) to preserve wealth or escape currency debasement.
Apart from Latin America, BTC volumes are also on the rise in places like India and across Africa.
Venezuela and Argentina Hit New Bitcoin Trading Volume Records
According to data from Coin Dance, peer to peer (P2P) Bitcoin trading volume on LocalBitcoins set new volume highs in both Argentina and Venezuela this past week. It’s important to note that these new volume records are based on the fiat currencies of the respective countries and not in terms of actual BTC volume.
Despite being the second-largest economy in South America, Argentina’s economy has spun out of control in recent years. Earlier in August, the government reached a $65 billion debt deal with the country’s major creditors.
Argentina’s debt deal is one of the most significant sovereign fiscal restructuring events in modern times and is bound to have profound implications for financial markets both at home and abroad. For one, the total sum is materially less than the $323 billion owed at the end of 2019.
Despite the massive debt relief, market analysts say Argentina’s economy will contract by about 10% in 2020. Meanwhile, Argentinians are spending more pesos to acquire Bitcoin. The largest crypto on the market is providing healthy returns in 2020, up by over 60% year-to-date.
For Venezuela, the country’s economic troubles are well-known. Amid crippling hyperinflation and worthless fiat currency, citizens have taken to Bitcoin adoption. Venezuela’s government is also pro-crypto, at least when it comes to escaping U.S.-imposed economic sanctions.
President Maduro and his destructive administration also created a sovereign digital coin dubbed the “Petro,” which has so far failed to gain any meaningful traction.
According to data from Usefultulips.com, a website that tracks P2P Bitcoin trading, U.S. dollar trading volume is also rising in sub-Saharan Africa and the Asia Pacific.