According to PANews, a recent working paper from the International Monetary Fund (IMF) has highlighted the importance of Bitcoin for individuals in high inflation countries such as Argentina and Venezuela. The paper suggests that Bitcoin is crucial for preserving wealth and accessing global markets during periods of financial instability.
The report also indicates that people are turning to Bitcoin to escape the instability of local economies and currencies, and to evade capital controls and strict financial regulation in their home countries. This is particularly the case in emerging markets like Argentina and Venezuela, where Bitcoin liquidity is high.
The countries with the highest inflow of Bitcoin include Seychelles, Venezuela, Moldova, Nigeria, and the Central African Republic. Residents are beginning to turn to Bitcoin for cross-border capital flows, making it more than just a speculative investment.
Countries like Seychelles and Moldova, which have attracted cryptocurrency exchanges due to their low tax rates and relaxed regulation, are also seeing people view Bitcoin as a safe asset due to currency devaluation and economic instability.