Cardano (ADA) founder Charles Hoskinson predicts increased adoption of cryptocurrencies as fiat currencies of several countries begin to fail.
Cryptos Seek Massive Adoption As Sovereign Currencies Fail
— Charles Hoskinson (@IOHK_Charles) October 31, 2022
Hoskinson bases this prediction on the recent victory of Lula da Silva as Brazil’s new president. Da Silva was previously president of Brazil, but he was jailed in 2017 on corruption charges. A Supreme Court ruling eventually freed him.
Hoskinson said South American countries are experiencing a left-wing wave that he believes will affect the region within the next decade.
Crypto Adoption in South America
Recent chainalysis report He pointed out that cryptocurrency adoption in South America has increased by 40% in the last 12 months.
According to reports, citizens of the region have adopted crypto as a means of hedging inflation, transferring money and seeking profits.
In Brazil, for example, authorities recently noted that over one million Brazilians bought cryptocurrencies from a local exchange operating in the country in July. There is no data on people buying from forex as only local platforms are obliged to report their users’ transactions.
tax office too disclosed In August, over 12,000 companies declared themselves holding cryptocurrencies.
Brazil, on the other hand, is just one country in South America that is seeing an increase in crypto adoption. There appears to be a pattern of increasing adoption of cryptocurrencies in struggling economies facing depreciation of their local currencies.
This happened in September in the UK, where the depreciation of the British pound caused a significant surge in trading volume between Bitcoin and the pound. Crypto Compare report revealed that trading volume peaked at £846 million on September 26.