Sunday, March 24, 2019
Home » Tag Archives: Peru

Tag Archives: Peru

Feed Subscription

Why Peru’s Central Bank has Warned Against Crypto Trading and the Impacts of this Warning

  By David Drake   In November of last year, the central bank of Peru released a warning announcing that cryptocurrencies do not have the support of central banks and are, therefore, risky investments. According to the bank, digital currencies pose a risk to investors because they are subject to high volatility and are vulnerable to fraud and the application of illegal financial activities. Peru’s central bank made this announcement at a time when the cryptocurrency industry was going through a rough chat that had seen the price of Bitcoin drop below the $4000 mark for the first time since it hit a high of almost $20,000 in December 2017. By the end of 2018, the overall market capitalization of the cryptocurrency industry had dropped by more than 70%. Growing Interest Even though there are currently no indications of Peru developing crypto-related regulations, it has been established that back in ... Read More »

Trading With Cryptocurrencies is Risky, Warns Peruvian Government

  By David Drake   The topsy-turvy cryptocurrency roller coaster ride hit another descent as the government of Peru put up a staunch resistance to its trade and use. This came as the prices of Bitcoin and other leading cryptocurrencies took a huge hit last month, suffering an 80 percent fall in value since the start of the year. The Peruvian central bank took a stand against cryptocurrencies, warning investors that dealing in these digital coins is risky business. The proclamations against cryptocurrencies are true, they have highly volatile prices, are vehicles for illegal activities, and are highly prone to fraud because of their decentralized system. However, ignoring what can be viewed as a great avenue for fiscal change can also be a costly mistake. Governments and regulators have the responsibility of finding a way to ingrain digital assets in their financial systems to benefit fully from their huge and ... Read More »

Peru’s Central Bank Warning: Will it Affect South America’s Cryptomarket?

  By David Drake   Some South American countries have widely accepted the use of cryptocurrencies more than others. The cryptomarket growth in this region has been linked to the need for citizens to find ways to make ends meet. Peru has experienced an increase in the use and trading of virtual currencies and is positive about its prospects. However, the Central bank in Peru has warned that cryptocurrencies, due to their unpredictability and unstable nature, are risky for investors. The bank outlined that the value of virtual currencies is not based on tangible assets, but on the trust of individuals, hence their uncertainty. The bank also noted that virtual currencies are used in illegal activities such as terrorism, money laundering and are also vulnerable to fraud. But how is this warning likely to affect the growth of cryptocurrency market in Peru and South America in general? Qupon‘s CEO, Joseph ... Read More »

Can South America Achieve Sustainable Cryptocurrency Growth?

  By David Drake   For a long time, the financial sector has largely remained unchanged, but this may no longer be the case. Cryptocurrencies are slowly but surely making headway towards transforming the way transactions are carried out significantly. For instance, companies such as Microsoft are accepting cryptocurrencies as payment for goods and services offered. The inherent benefits of low transaction costs and faster transaction speeds offer value to cryptocurrency users, compared to the current financial system. Before global acceptance can be achieved, conventional financial institutions need to start integrating the new technologies into their systems. But this might not be happening in Peru as yet after the country’s central bank issued a cryptocurrency warning. The Status Quo In its Twitter account, the Central Bank of Peru stated that digital currencies are very volatile, are being used for illegal undertakings and are vulnerable to fraud incidences. For these reasons, ... Read More »

Scroll To Top