Victor Ugochukwu · Dec 14, 2020 . 5min read
Peer-to-peer trading volumes hit record highs in developing countries like India, Mexico
Developing countries are turning to cryptocurrencies due to a number of reasons, and as a result peer-to-peer trading has increased dramatically.
By Shilika · Jul 24, 2020 . 4min read
Peer-to-peer trading in Bitcoin is hitting record volume figures in many developing countries. The month of July has seen all-time highs in countries like India, Ghana, the Philippines, Argentina, and Mexico.
Crypto researcher Kevin Rooke provided the following figures:
- India ($3.4 million per week)
- Ghana ($1.7 million per week)
- Argentina ($1 million per week)
- Philippines ($1 million per week)
- Mexico ($700,000 per week)
- Egypt ($150,000 per week)
Crypto trading in India saw a surge after the Supreme Court ruling from last week. The countries highest court ruled against a decision by the Reserve Bank to ban crypto-related activities in the country. Additionally, most parts of the country are under strict lockdown. This means that most people are at home and many are unemployed, so it is not surprising that they have turned to peer-to-peer crypto trading.
Mexico’s currency’s value has fallen sharply. At the present moment, it has fallen by 18% in relation to the dollar. This may be one of the reasons why trading volumes in the country have risen.
Developing countries are not the only ones who saw an increase, however. The US also saw a record $30 million worth of Bitcoin traded peer-to-peer over one week in June. COVID-19 is hitting the US hard and has led to mass unemployment. The government has stopped handing out stimulus checks and therefore many are looking at alternate means of making an income.
Developing countries, in particular, are experiencing high peer-to-peer trading volumes due to the lack of properly regulated exchanges. Laws surrounding cryptocurrency are still not clear in many of these countries. Therefore reliable exchanges are yet to be set up.
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