Hoskinson sees increasing crypto adoption when sovereign currencies collapse
According to a recent analysis by Chainalysis, crypto use in South America has increased by 40% in the last year.
Charles Hoskinson, the inventor of Cardano (ADA) has projected that crypto usage would increase when the national fiat currencies of many nations begin to collapse.
Hoskinson made this forecast based on Lula Da Silva’s recent election as president of Brazil. Former Brazilian President Lula da Silva was imprisoned in 2017 on corruption accusations. A Supreme Court judgement ultimately led to his freedom.
According to Hoskinson, South American nations are undergoing a left-wing wave, which he predicts will have a significant influence on the continent over the next decade.
According to a recent analysis by Chainalysis, cryptocurrency use in South America increased by 40% in the last year.
According to the survey, residents in the area embraced cryptocurrencies to hedge against inflation, make remittances, and seek financial benefits.
In Brazil, for instance, officials recently reported that more than one million Brazilians purchased cryptocurrency from local exchanges in July. Only local platforms are required to disclose user transactions, thus there is no data on individuals who purchased through overseas exchanges.
Additionally, the tax office stated that more than 12,000 businesses admitted possessing cryptocurrency in August.
However, Brazil is not the only country in South America where crypto use is on the rise. There seems to be a tendency for rising crypto adoption in troubled countries whose native currency is declining.
This occurred in September in the United Kingdom, when the collapse in the British Pound Sterling caused a large increase in the trade volume between Bitcoin and Pounds. A survey by CryptoCompare shows that trade volume peaked on September 26 at £846 million.