In Argentina, Bitcoin (BTC) continues to trade at a premium after a sharp currency evaluation sent investors to a “safe haven”.
Argentine peso falls by 30%.
Data from local cryptocurrency exchange Buenbit brought Bitcoin trading around $11.750 on August 13, compared to around $11.330 on major global cryptocurrency exchanges.
When a defeat of incumbent President Mauricio Macri in the primary elections caused the downward route of the Argentine Peso (ARS) last Monday, the Bitcoin premium was higher, meaning BTC/USD passed $12.300 on Buenbit.
In USD, the collapse of the peso was even clearer: it jumped from 45 pesos to a high of 59 pesos before settling on 53 pesos.
The presidential leader of Argentina, Alberto Fernandez, also criticized Macri for raising short-term debts to unsustainable levels, Bloomberg reports. Fernandez said Monday in an interview with a local TV channel in Buenos Aires:
“Nobody believes that Macri can repay the debt. Bond prices indicate that investors see the country in default.”
However, Fernandez added that he does not want to default on the country’s debt.
As investors consider the failure and potential aggravation if the October presidential election produces repeated results, Bitcoin supporters see the usefulness of the cryptocurrency, which is going to become a new market where its benefits are clear.
As trading volumes on P2P exchange Localbitcoins showed signs of increase, Morgan Creek Digital co-founder Anthony Pompliano suggested that the Argentine Peso could be the first in a chain of fiat currencies falling apart.
“Could this be the first of many exposed in a currency crisis?” He tweeted Monday.
Latin America has become an unintended melting pot for the acceptance of Bitcoin (BTC), with the Venezuela crisis at the forefront. Other countries have felt the domino effects and many see continued interest in Bitcoin (BTC) as the fiat weakness persists.