Euro as the new main safe haven

The main cryptocurrency exchanges said about bitcoin operations volume increasing. The emerging markets show the largest growth at that. For example Peer-to-peer (P2P) crypto exchange Paxful reported that its bitcoin trading volumes climbed 35% to $1.1 billion during the first six months of 2020 compared to $817 million a year ago.

More than $182 million worth of bitcoin (BTC), on average, was traded on the platform every month between January and June this year, it said. Nigeria, U.S.,Ghana, India, and Kenya led the growth, with emerging markets rising fastest.

The average amount per trade is currently fluctuating at $102 — more than twice the average five years ago, which was $45.

Paxful chief executive officer Ray Youssef attributed the growth in user numbers “to high inflation rates, weak national currencies, inadequate financial infrastructures, and growing economic uncertainty.” Everything he said applies not to the emerging markets only but to the largest world economy too. And the fact that the US has the second place in the list confirms that the US economy is experiencing the same events like Ghana and Nigeria.

German magazine the Focus believes Euro can be the new safe haven for a capital that is leaving USD.

Euro has grown to the yearly high ($1,16) fastly when BLM movement starts despite the rate was below the annual minimum ($1,0635) at the beginning of COVID-19 crisis.

The pandemic is an additional factor weakening of the US currency. More than 3,445,500 people in the United States have been infected with the coronavirus and at least 136,300 have died, according to a New York Times database. The US has the first place in total cases (26% of the world) and total deaths (24% of the world) ratings.

Euro will have a good chance to be the main world reserve currency if political and economics storms in the US are being till the president election in the November.

Besides the increasing of users of P2P exchanges to 70% in annual terms in the most populous countries will inevitably lead to a leaving small and medium investors from a national currency to bitcoin and not to USD as it usually was.

May be in some months we will have to watch for bitcoin rate in euros. But EU has forbidden using stablecoin in Europe.