- The bitcoins’ waving prices and the resistance put up by the Peru Government resulted in bitcoins and other cryptocurrencies took a huge hit last month.
- It suffered a fall of 80 percent at the start of the year.
- The Government of Peru took a stand against cryptocurrencies and had warned the investors that dealing with cryptocurrencies is a risky business, and it will be strongly regulated.
The bitcoins’ waving prices and the resistance put up by the Peru overnment resulted in bitcoins and other cryptocurrencies took a huge hit last month. It suffered a fall of 80 percent at the start of the year. The Government of Peru took a stand against cryptocurrencies and had warned the investors that dealing with cryptocurrencies is a risky business, and it will be strongly regulated.
Their proclamations are true as bitcoins always face volatility in their prices and are vehicles for illegal activities. They are also highly prone to fraud because of their decentralized nature. But such a decision of the Government can stop the country from availing of the benefits arising from the cryptocurrencies market. The Government should take the initiative to find a way so that these digital assets give benefits to its economy.
Nonetheless, the Government showed no interest in the blockchain technology and digital assets in their last R3 consortium group, which was held last September.
Meanwhile, a leading Peruvian regulator said that the pandemic would not prevent the Government from regulating the crypto industry; he added that monitoring of the Peruvian crypto exchanges had already begun.
The Newspaper “Espinosa” Says
The country has not stopped diagnosing the digital assets as they are traded here and are in circulation regulations that have to be followed. The newspaper also said that the Government needs to have full depth knowledge of the virtual currency, its industry, and things in the country to regulate it fully.
The demand for digital assets in the country has risen against their traditional cryptocurrency. Bitcoin rose to 30 from just in one month while their currency Peso is struggling against inflation. The Venezuelans still believe that cryptocurrencies are a better alternative than the national coin, which is suffering from hyperinflation. The other parts of Soth America are pushing for greater acceptance of cryptocurrencies. The Latin Americans think that cryptos are OK coins. They believe that involvement in cryptocurrencies can stabilize their economy and provide investors with better alternatives.
The warning from the Peruvian Government has put the traders to deal at their own risk. They are now also aware that the Government is monitoring their transactions. It is one of the SBS’s current goal (Superintendencia de Banca, Seguros AFB) who also quoted that the virus will not delay the organization’s work.
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