Angola in southern Africa is currently struggling with high inflation levels of 25%. This has led to the Angolan Kwanza losing value rapidly, posing a big risk to the country’s economy.
High levels of inflation such as those Angola is currently facing not only damages the economy in general but makes life very hard for ordinary citizens. With the wages each Angolan takes home shrinking in real terms, it’s becoming harder for working people to provide for their families.
Could Bitcoin provide an answer?
While there has been some negative press around cryptocurrencies from the established banking system, Bitcoin and its competitors may actually represent a way out of the inflation trap for ordinary Angolans. It must be remembered that the majority of the negative reaction to Bitcoin comes from a financial system that is worried about the threat cryptocurrency represents to the current status quo. While a currency like Bitcoin that is not centrally controlled and gives power back to its users is not popular with the banking establishment, it could be just what ordinary people in Angola need to help them out of their current predicament.
Bitcoin could be Angola’s answer
In the fight against rising inflation levels, Bitcoin can provide real-time solutions for Angola. This is mainly due to the opportunity it brings for Angolans to change their local currency into stable, global US dollars that they can live well on.
At present, it is near impossible to do this in Angola without using Bitcoin. You could change your Kwanzas for unofficial ‘street’ dollars, but this is an unregulated and risky business. Simply going to the local bank is not an option either, as Angolan banks will not change the local currency into US dollars for you.
Bitcoin to the rescue
When people talk about Bitcoin, they very often forget that it is struggling citizens in places like Angola that it can really help most. By giving them a safe and secure way to exchange their local currency for US dollars, it may just provide the solution for Angola’s burgeoning inflation crisis.