European Central Bank: Cryptoassets can provide a store of value for people in countries with unstable currencies

In a new report on Bitcoin and global cryptocurrencies and local drivers, the European Central Bank (ECB) lists three factors driving the adoption of crypto assets in emerging and developing economies (EMDEs), one of which is crypto Assets can provide a store of value to people in countries with unstable currencies for the following reasons: First, cryptocurrencies may be used as speculative assets, which may be particularly attractive to investors in countries whose portfolio choices are restricted by regulatory or institutional factors; Second, despite high price volatility, these cryptocurrencies may represent a better store of value relative to the national currency of a country with high inflation and a tendency to depreciate its exchange rate; Third, residents of emerging market and developing economies can use cryptocurrencies as a means of payment for cross-border transactions to circumvent capital controls or reduce the cost of receiving foreign remittances. (The Daily Hodl)