Bitcoin Becomes Salvation for Wealthy Latin Americans
In recent years, Latin American countries have often faced various economic problems. Against the backdrop of revolutions, military coups and other disasters, the savings of the inhabitants of the region have especially been exposed to risk. They often had to think about the ways to invest their money in order to protect it from possible confiscation, hyperinflation and other consequences of a difficult financial situation. And if earlier the citizens resorted to offshore registration, now the best way for them to save money is Bitcoin.
It has been made known recently that in 2017 at least two cryptocurrency funds were opened, which are specifically designed to save the funds of wealthy Latin Americans. And, despite the fact that they are both outside the Latin American countries, the absolute majority of their visitors are people from Argentina, Mexico and the Caribbean.
"The financial market in Latin America is very volatile," said Carlos Mosquera, head of the Italian cryptocurrency hedge fund Solidus Capital. "Therefore, digital currencies have become a new depository for the savings of these countries' residents."
As Mosquera says, the catastrophic financial situation in Venezuela, which destroyed the purchasing power of their residents, has forced the latter to consider Bitcoin as an exit from the current situation. Also, in addition to keeping money, Venezuelans have the opportunity to bypass the strict sanctions imposed by the government of the country, and now they can transfer their money abroad or buy the US dollar in exchange for BTC.
The second most popular fund among the Latin American rich folk is the American Crypto Assets Fund, which started its work only three months ago. Its head, Roberto Ponce Romay, said:
"We are fully confident that the cryptocurrency will soon become the same class of assets as stocks and bonds."
According to Romay, the fund already keeps $15 million in the cryptocurrency form, constraining the market value of each asset. Also, Head of Crypto Assets Fund adds that next year he plans to open another crypto fund, which, in his opinion, will offer active investment management.