Bitcoin

CoinDance charts show the growing interest of Chileans in converting their local currency into Bitcoin

According to the weekly reports from Coin.Dance The volume of Bitcoin peaked in Chile on September 5th, measured in Chilean pesos at almost CLP 600 million.

The graph of the company responsible for compiling statistics by country on the main P2P platforms in the crypto world shows that in the period corresponding to the first week of September 2020, The BTC volume calculated in the local Chilean currency reached its historical maximum within the LocalBitcoins platform with a daily average of just over one hundred thousand US dollars.

CoinDance charts show the growing interest of Chileans in converting their local currency into Bitcoin
CoinDance charts show the growing interest of Chileans in converting their local currency into Bitcoin

The increase in volume registered in local currency in the Andean country still far from its all-time high for BTC as measured in cryptocurrency, reached in the week of July 11th when it registered a volume of 143 BTC during that period.

The data reflect that over the past three months, during the maximum period of the pandemic, Chileans have seen a boom in exchanging local currencies for bitcoins within the platform, possibly motivated by the decline in ordinary income due to the cessation of activities in the face of the health emergency .

This is in addition to an increase in the consumer price index “IPC” of 2.4% for twelve consecutive months. This emerges from data recently published Tuesday by the National Institute of Statistics “INE”.

According to estimates by the Chilean Central Bank a price increase of around 2% is expected, Although this country’s finance minister has stated that inflation of 1.4% accumulated so far this year is “good news” that is part of the proposed target.

In the eighth month of the year Nine of the twelve divisions that make up the CPI basket had a positive effect on the monthly variation in the index «0.1%», with the footwear and clothing sector recording the largest increase «2.3%».

In addition, the Chilean peso “CLP” had its highest depreciation peak in the last 30 days last week. According to the central bank, it lost up to four percent of its value against the dollar in the period mentioned above, compared with 10 percent in the last twelve months.

In addition, the ravages of the pandemic are already beginning to have an impact on the Chilean economy GDP declined by 14.1% in the second quarter compared to the previous year. In contrast to the 0.2% expansion recorded in the first quarter, this was the worst figure since the beginning of the COVID-19 pandemic.

The increase in the metric on LocalBitcoins for Chile and the macroeconomic data reflected by the official bodies, They suggest that the residents of the South American country turn to Bitcoin more often to protect themselves from the devaluation of their local currency and the economic situation in times of pandemic.

It is not the first time that Chile has generated this type of record in the LocalBitcoins P2P exchange. Cointelegraph reported the increase in BTC volume in the Latin American country to historic highs in the fiat currency in the past few months of February and April.

In the meantime, the country continues to adopt an attitude that is vulnerable not only to the widespread adoption of Bitcoin, but also to blockchain technology in general, including at the government level.

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