Top 15 Countries by Total Exports (1960-2018)
- Cryptocurrencies are popular in countries with high inflation
- Bitcoin loves difficulties
- Developed countries are in no hurry to accept bitcoin
Russia entered the top 15 countries by the number of cryptocurrency owners
Countries with weak economies choose bitcoin
Developed countries are in no hurry to accept bitcoin and other cryptocurrencies
Investors choose cryptocurrencies to protect assets from inflation
According to the Statica resource, Russia took 11th place in the ranking of countries with the largest number of cryptocurrency holders. An anonymous survey revealed that 9% of Russians own or invest in cryptocurrency directly or through funds.
Cryptocurrencies are popular in countries with high inflation
Turkey has become the leader in terms of the number of hodlers and cryptocurrency investors. A fifth of the country’s population admitted that they invest or store crypto coins. The top five also includes Brazil, Colombia, Argentina and South Africa.
However, if you analyze more deeply, then it is in these countries that high inflation is observed, and cryptocurrencies can really serve as a protective asset against the devaluation of the national currency. So, for example, inflation in Turkey exceeded 15%, and in Argentina this figure exceeds 53%..
The inflation rate in Russia is 3.6%, while in Japan this figure does not exceed 0.48%. Additionally, cryptocurrencies remain popular in countries with dismal economies..
Bitcoin loves difficulties
Analysts at blockchain-focused company Chainalysis have concluded that difficult access to banking services and the need for remittances are key factors for the transition to cryptocurrencies. Due to the volatile economic environment, many Latin American businesses prefer cryptocurrencies to their local currency for commercial transactions, according to a report titled “How Latin America Mitigates Economic Instability with Cryptocurrency”.
For the same reason, cryptocurrency has found widespread use in African countries. Here, cryptocurrencies, and in particular bitcoin, are used as a transit asset that serves to buy the dollar.
For example, Nigeria and Venezuela specialize in exporting oil to the world market, but the low cost of national currencies and the lack of a fiat dollar have led to a real financial crisis. Venezuela has suffered the most. Due to the US sanctions against President Maduro’s regime, as well as the catastrophic inflation of the new bolivar, the country’s national currency, millions of residents have remained below the poverty line, and the average wage does not exceed $ 5 per month. In order to somehow make savings, the residents of the country decided to accumulate money in bitcoins. As the Venezuelans themselves say, later bitcoins can be exchanged for dollars and used to pay off goods and services..
Developed countries are in no hurry to accept bitcoin
At the same time, advanced economies are in no hurry to implement cryptocurrencies, although governments are showing interest in issuing their own digital coins. For example, the same Japan has declared its readiness to use CBDC as a means of payment and is now considering the possibility of starting testing the technical aspects of CBDC Paper notes and coins may be a thing of the past due to a new financial instrument – digital currency of central banks (CBDC). As … More, and then proceed to a detailed examination of the cooperation with each country. At the same time, the authorities are ready to revise the tax legislation..
Today, an individual can be identified not only by the address of the bitcoin wallet, but also by the tax number. But in fact, the state does not receive deductions for transactions with bitcoin in its budget. Therefore, today there is an urgent issue of changing legislative norms so that the Japanese treasury receives payments from each cryptocurrency transaction..
Japanese Finance Minister Taro Aso has asked law enforcement officers to investigate any digital currency transactions from which the government has not made a profit. No transaction should be free for the state budget. At the same time, taxes on banking and trade operations remain one of the highest among Asian countries..
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