Binance, the world’s largest crypto exchange, has reported a surge in customers amid a strong dollar that has continued to boss other currencies. A company executive speaking with Reuters stated that the surge in clients being enjoyed by the platform is because of rising inflation.
According to Maximiliano Hinz, a leading executive at Binance Latin America, cryptocurrency is becoming attractive to more and more people because of global inflation. With U.S July inflation data coming in at 8.5%, people are beginning to invest more in bitcoin to protect themselves from inflation.
Hinz reiterated his point by making an example of Argentina, where the country’s annual inflation has risen to as high as 90%. And it isn’t only Argentina that is seeing record inflation. Inflation rose to as high as 9.1% in June in the U.S., forcing authorities to increase interest rates by 75 basis points.
Given the record inflation in Argentina, Brazil, and Mexico, this region has become one of Binance’s top markets. Despite the crash in crypto prices, more and more Argentinians are converting their savings into Bitcoin.
Even though Binance has reported a surge in clients, thanks to rising inflation in many countries, the company has not stated the exact number of clients that have joined the platform in the last couple of months.
Growing crypto adoption
While Binance is seeing a surge in crypto clients as inflation continues to bite harder, there has also been state-wide crypto adoption. El Salvador has led the pack following the country’s adoption of Bitcoin as a legal tender. The Latin American nation has invested over $100 million in Bitcoin since making Bitcoin its legal tender. Although crypto prices have dropped significantly since then, the country isn’t relenting in its attempt to keep its economy afloat using Bitcoin.
Despite countries in the South American region being receptive to cryptocurrency, there still isn’t any meaningful cryptocurrency legislation in the region. The company hopes things will improve as adoption begins to take center stage.