Charles Hoskinson, the founder of Cardano (ADA), predicted that the adoption of cryptocurrencies will accelerate as multiple countries’ national fiat currencies begin to fail.
The prediction was based on Lula Da Silva’s recent election as Brazil’s next president. Former Brazilian President Da Silva was incarcerated in 2017 on allegations of corruption. He was set free due to the Supreme Court’s decision.
Hoskinson stated that a left-wing wave is already sweeping across South American nations and that this surge will have an effect on the continent over the next ten years.
According to a recent report from Chainalysis, South American cryptocurrency adoption has increased by 40% over the past 12 months.
The report claimed that residents of the area have embraced cryptocurrency as a way to transfer money abroad, hedge against inflation, and generate income.
For instance, the Brazilian government recently reported that more than 1 million Brazilians acquired cryptocurrency from domestic exchanges operating there in July. Since only local platforms are required to report user transactions, there is no information on individuals who have purchased from foreign exchanges.
The tax agency also revealed that in August, nearly 12,000 businesses confirmed that they possessed cryptocurrencies.
Brazil is just one of the South American nations where the use of cryptocurrencies is becoming more mainstream. Increased crypto adoption seems to be a theme in faltering economies with deteriorating exchange rates.
This occurred in the U.K. in September when the drop in the British Pound Sterling’s value triggered a dramatic increase in trade volume between the two currencies. According to a CryptoCompare report on September 26, the trade volume reached an all-time high of £846 million.
