Bitcoin (BTC) has achieved remarkable milestones by reaching all-time highs against several inflation-ridden fiat currencies in a span of just 30 hours from October 23 to 24.
Notably, these currencies include the Argentine peso, Nigerian naira, Turkish lira, Laotian kip, and the Egyptian pound.
It’s important to emphasize that this surge in Bitcoin’s value is primarily attributed to the continuous devaluation of these national currencies, which has been further exacerbated by Bitcoin’s recent 16% price surge.
The situation for the naira and lira is particularly dire, as they plummeted to their lowest exchange rates against the United States dollar on October 24 and 25, respectively.
The Argentine peso is also not faring well, currently resting at a mere 0.85% above its all-time low against the U.S. dollar.
According to data from the International Monetary Fund (IMF), the Venezuelan bolivar leads the world with an alarming annual inflation rate of 360%, followed closely by the Zimbabwean dollar at 314%, the Sudanese pound at 256%, and the Argentine peso at 122%.
The Turkish lira and Nigerian naira also feature on this distressing list, ranking sixth and fifteenth, respectively, with annual inflation rates of 51% and 25%.
Cryptocurrency enthusiasts have long considered digital assets like Bitcoin and stablecoins as effective hedges against rampant inflation, and the recent data only strengthens this narrative.
Notably, Nigeria, Turkey, and Argentina are among the countries with high cryptocurrency adoption rates globally, as per a September 12 report by Chainalysis.
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However, it’s worth mentioning that these countries’ governments have not always been aligned with the cryptocurrency industry.
Nigeria, for instance, initially banned local banks from providing services to cryptocurrency exchanges in February 2021.
Yet, progress has been made, with Nigeria signaling its intention in December 2022 to pass a bill recognizing cryptocurrencies as “capital for investment,” citing the need to align with global practices.
In Turkey, despite a strong interest in cryptocurrencies among the populace, the central bank banned the use of cryptocurrencies for payments of goods and services in April 2021.
Simultaneously, they have been actively exploring the creation of a central bank digital currency (CBDC) to digitize the Turkish lira.
Meanwhile, Argentina’s inflation crisis remains a key concern, with a presidential election scheduled for November. The presidential candidates, Javier Milei and Sergi Massa, have differing approaches.
Massa, currently the country’s minister of economy, aims to launch a CBDC swiftly to address the persistent inflation problem and intends to keep the U.S. dollar away from Argentinians.
In contrast, Milei advocates for adopting the U.S. dollar and abolishing Argentina’s central bank as part of his vision for economic reform. The election outcome will likely shape the country’s economic trajectory significantly.
