CRYPTO THE KNIFE EDGE OF THE BIG BANKS.

As a growing number of countries around the world face economic hardships amidst political turmoil, central banks find themselves with little to no power or resources,With federal entities unreliable many turn to digital currencies.

CENTRAL BANKS CRUMBLE

Over the last year many countries around the world saw an increase in economic hardship, Such austerities resulted from the ongoing COVID-19 pandemic, corrupt regimes, war, natural disasters, or lingering financial degradation.  In some cases such as Lebanon, all of the above are applicable. 

Lebanon is a country with ever-heightening waves of economic, political, and societal uncertainty. Another said wave appeared in 2019 with the depletion of the Lebanese financial system. The national currency of Lebanon, the Lebanese pound (LBP) is pegged to the dollar around 1,500, though black market rate soared over 17,000 last week. 

Another example of a scrambling central bank is in Venezuela. Following continuous economic decline, the country’s GDP suffered a massive drop over the last eight years. According to data the country has lot over 70 % of its value since the start of the year

Another example is my homeland Nigeria,our currency has lost of half of its value in the past 5 years which is appaling due to our corrupt administration and bad economic policies.

CRYPTO TO THE RESCUE

While central banks plunder and even disappear, individuals and sometimes even countries turn to crypto for saving. In Lebanon the bank crash encouraged crypto holders to start their own P2P markets, like Mario Awad. A similar trend can be seen in India. In addition, P2P bitcoin transactions were at their highest in mid-2021 in Africa with a 50% increase over the last year. 

In Taliban-controlled Afghanistan, the case for crypto strengthened as traditional financial institutions faltered. During the months following the government takeover, crypto usage surged and bumped Afghanistan into the top 20 of the 154 countries in the 2021 Global Crypto Adoption Index. According to reports, early crypto adopters used digital currencies for support and assistance during recent uncertainty. 

However, there are questions over the risk of crypto in unstable places. For example, if the Taliban decide on a cryptocurrency policy which allows them to capitalize on anonymous transactions and avoid Western financial systems.

Nigeria leads Arica in p2p crypto transactions in Sub Saharan Africa, Despite the ban on crypto early this year the usage of crypto has only continued to surge.

Crypto assets are here to say despite regulatory fears, the disruption of the the present financial system is inevitable as its inefficient, corrupt and lacklustre.

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