Despite the general decline in trading volumes on LocalBitcoins, Venezuela and Argentina recorded new all-time highs
In fact, ever since the introduction of the mandatory KYC, trading volumes on the Finnish platform have fallen sharply, from around $60 million a week in September to just over $30 million today, a reduction of almost 50%.
This powerful reduction, however, does not seem to have discouraged South American users, who are continuing to use the platform to trade bitcoin.
In particular, Venezuela and Argentina have seen new historical highs in local currency.
In the last week, exchanges in Bolivar have exceeded 200 billion VES, breaking the previous record, set the week before with 151 billion VES.
This record is the result of Bolivar’s continuous and massive loss of purchasing power due to hyperinflation, to the extent that last week’s exchanges in bitcoin were high, although not record-breaking: 672 BTC, against, for example, the record of 2,487 BTC in February.
Argentina also experienced a new historical high, with 22 million ARS traded in the last week. The previous record was set at the beginning of November, with almost 20 million.
Although to a lesser extent, inflation also had an impact in Argentina, as the trading volume in bitcoin was 43 BTC, compared to 46 in February, for example.
Another country with high trading volumes in the last week was Chile, with 238 million CLP, equivalent to 38 BTC.
The situation in Chile is different, considering that there is widespread social unrest, with the Chilean peso not suffering from particularly high inflation. It is possible that concerns about the state of the country have led to increased trading on LocalBitcoins.
The fact that the trading volume on the platform is in sharp decline at a global level makes these new records even more striking, which occurred probably at the worst time in recent years for the Finnish website.
Unfortunately, there are no other similar sources available to judge the phenomenon as a whole, net of the problems of the individual platform, so it is mandatory to limit the analysis to these most striking cases.