Citizens of many South American countries have helplessly watched their national fiat currency plummet in value against the US Dollar this year amid corruption and socioeconomic turmoil. Some cryptocurrency ATM manufacturers are offering a way out.
Many countries in South America have been on an economic downward spiral stemming from political corruption, poor economic governance, and cases of hyperinflation that have caused large percentage devaluations of their national currencies.
The worst cases of devaluation are the Argentine Peso — which has slipped 125 percent against the value of the US Dollar this year — and the Venezuelan Bolivar, which lost more than 45,000 percent against the US Dollar since the beginning of 2018. Now, the bolivar is essentially less valuable than the paper it is printed on.
With there being nowhere else to turn, many have looked to cryptocurrency as a safe haven and way out of the turmoil.
Where’s The Exit?
Manufacturers of cryptocurrency ATMs like Athena Bitcoin and Odyssey Group have taken note of the situation in South America and want to allow a simple and convenient option for those who are open to the idea.
According to Dante Galeazzi, Argentina operations manager for Athena Bitcoin, “Athena Bitcoin already has 12 ATMs in Colombia, and the Argentine financial crisis, with inflation expected to exceed 40 percent by the end of the year, presented a growth opportunity in the cryptocurrency market.”
Bitcoin ATM companies aim to place nearly 2000 new ATMs in Argentina by this time next year.
Citizens of Argentina or Venezuela who are skeptical of Bitcoin because of its 65 percent correction this year can’t argue that 65 percent is still less than 125 percent — and abundantly less than 45,000 percent.
People seem to agree, as evidenced by Bitcoin volumes in both Argentina and Venezuela. According to Coin Dance, Bitcoin volumes have skyrocketed to all-time highs in both countries at the time of writing this article.
Do you think Bitcoin ATMs will be successful as a means of safeguarding individual citizens’ money in South America? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock, Coin Dance.