Against the backdrop of a situation of continued inflationary pressure and flanked by recessionary factors around the world, investors are seen trying to protect themselves by choosing to invest in digital assets, especially cryptocurrencies.
The statement was issued by the world's largest crypto exchange platform, Binance, reporting that the increase in the number of its customers was due to inflation and the strengthening of the greenback in emerging markets.
Commenting on the head of Binance in Latin America, Maximiliano Hinz, cryptoassets like Bitcoin (BTC) are seen as a way for investors to protect themselves from inflation.
He explained that investors may be looking for a place to store value for the long term since there is a possibility that a recession will arrive as early as next year.
Hinz also cited Argentina as an example, where the country with an annual inflation rate as high as 90% is now one of the company's main markets, followed by Brazil and Mexico.
It is understood that Argentina has seen almost all of its citizens invest in BTC this year, even though the value of the asset is in a bearish trend.
He added that even though only El Salvador has so far appeared as a valid BTC tender, it does not mean that other Latin American countries will be left out of the company.
It is well known that El Salvador under the government of President Nayib Bukele passed cryptocurrency legislation and succeeded in making BTC the official currency of the country.
Ijmal from Hinz that the absence of regulations nor an official framework does not carry a negative sign, if something is not banned then it is legal.
