LocalBitcoins data shows that weekly trading volume in Chile’s fiat currency has recently reached a new all-time high.
The cryptocurrency market data platform CoinDance shows that the volume of LocalBitcoins in Chile reached a new record of over 330 million Chilean pesos in the week ending April 4.
The volume of LocalBitcoins in Chile in Chilean pesos. Source: CoinDance
It is worth noting that these numbers are also influenced by the devaluation of the Chilean peso. According to the XE Forex website, the coin has fallen more than 6.45% against the dollar in the past two months alone and has lost 27% in the past year.
According to the cryptocurrency market data website CoinLib, the Chilean cryptocurrency exchange CryptoMarket has also seen a significant increase in trading volume in recent weeks. The daily trading volume in US dollars on the platform increased by almost 270% compared to March 30 and reached around USD 281,000.
Residents appear to be turning to the cryptocurrency when looking for an asset that can protect their savings from depreciation.
As the devaluation of its fiat currency suggests, Chile is currently in considerable economic trouble. Bloomberg recently reported that the country’s problems are exacerbated by the current COVID-19 pandemic, which forced Chile to face forced closure, imposed by both the police and the military. Still, Bloomberg claims that the plan appears to be working:
“So far, only 160 deaths have been registered in a nation of 18 million. On Wednesday, 464 new infections were announced, compared to a peak of 534 on April 16 for a total of 11,296. As everywhere, the actual numbers are likely to be higher.”