This week was news that the Congress of Peru approved the possibility for contributors and former contributors to contribute to the Peruvian Pension Standardization Bureau can withdraw up to 4,300 soles from their personal pension funds. According to forecasts by the Peruvian executive, it is estimated that the funds will have to be withdrawn more than 13,280 million soles (about $ 3,709 million) and that could be spread across 4.7 million Peruvians.
This measure, unsupported and consistently opposed by the current government, is unprecedented in the Andean nation despite taking place amid the economic complications Peru is going through due to the coronavirus pandemic. Just last week, Bloomberg confirmed that Peru, with its GDP falling by 30.2%, is the developed economy with the largest decline within the above index, showing the seriousness of the Peruvian economy.
Will Peruvians Invest in Bitcoin?
Despite the fact that it is an action proposed to help those most in need who have faced financial complications in the middle of the pandemic, The ability to withdraw approximately $ 1,200 (the approximate change from 4,300 soles to be shipped) could present an opportunity for many to enter the Bitcoin market.
To explain this point in more detail, we spoke to Rodolfo Pozo, Advisor to LocalCoinSwap and resident in Peru, who gave us his perspective from the region on this approach.
As a first comment, Pozo mentioned that yes, that There was a “very high probability that Peruvians would invest all or part of their pensions in Bitcoin”., although expressed that This decision largely depends on people being able to educate themselves about cryptocurrency, evaluate its benefits, and know its limitations.
For the LocalCoinSwap advisor: The biggest obstacle that Peruvians face in order to invest their pensions is the lack of knowledge about Bitcoin and the different ways to buy the asset. He mentioned that there is still this “fear of the new” and “learning curve” that needs to be overcome in order for people to enter the market. However, he expressed that once the person understands the basics of Bitcoin, they don’t stop learning about the cryptocurrency and want to keep diving.
To encourage a person to invest part of their pension in Bitcoin, Now fences that should mention that the asset was selected as the most profitable of the decade gives an explanation of the halving and its impact on the asset price, in addition to explaining the shortcomings of the dollar and other fiat currencies.
Beyond what Pozo mentioned, it is not inappropriate to ponder the possibility that Peruvians could use their pension funds to get into Bitcoin. As seen in the United States, where Americans used the $ 1,200 stimulus checks the government gave to buy Bitcoin, a similar episode could occur in the Andean countries.