Peru, a country not commonly associated with bitcoin or cryptocurrency, is experiencing a major increase in the adoption of the digital currency after the first round of its presidential election process. The presidential candidate with the most vote support, Pedro Castillo, is known for his interventionist policies, so Peruvians may be ready for an economic downturn.
Peru cryptocurrency trading volume ramp up
There has been a significant increase in the amount of cryptocurrency traded in Peru during the week of the first phase of presidential voting, Reports From Buda, one of the country’s premier cryptocurrency exchanges. This may be related to how the ballot is expected to be defined, with a candidate interfering with the ballot being the favorite to win the economy.
In the weeks of the presidential ballot, the amount of cryptocurrency trading increased by about 24.14% compared to the previous week, and it continued to rise with an increase of 24.36% in the week following the election. Almost likewise, bitcoin trading volume also rose by 25.10% to 23.05% respectively in those weeks.
Pedro Castillo, one of the favorites to win the ballot, is an interventionist policy regarding economic policy and has talked of nationalizing some of the major activities in the country, including mining operations, oil industry and telecommunications. This has caused some apprehensions among citizens who may turn to cryptocurrency to avoid currency devaluation in the future.
Peru follows in Argentina and Venezuela’s footsteps
If this political change occurs, Peru may be the next country to experience a cryptocurrency trading boom in LATAM, as Argentina And Venezuela done before. According to the latest, Pedro Castillo is leading the election with 44.8% against his rival Keiko Fujimori, who is in second place with 34.4% of the ballot intentions. vote From the Peruvian Institute of Studies.
While it is still too early to predict what may happen in the country if Peru goes down the interventionist path, currency devaluation may lead to exchange controls, resulting in cryptocurrency as an option for people to hedge their funds. May be motivated to take.
This is what has happened in Venezuela and more recently in Argentina, where sick citizens turn to cryptocurrency in inflation-driven economies. The decentralized nature of bitcoin and other cryptocurrencies makes them perfect for this use case as they cannot be controlled by states seeking to thwart the economic freedom of their citizens.
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