Inflation wave reaches Guatemala, Bitcoin is the answer

Guatemala no longer has the lowest inflation in Central America, as the inflation index rose in July to its highest level in thirteen years.

Faced with the rising cost of living, some local communities are beginning to express their discontent and decide to withdraw their money from state control and use Bitcoin (BTC) as an alternative to escape the situation that impoverishes them more every day.

In its latest report, the National Institute of Statistics of Guatemala (INE) recorded an acceleration of 8.36 percent in inflation in July, compared to the previous month, which was 7.55%.

Since June, Guatemalans have had to pay significantly more for their food. It is especially true for corn, potatoes, and tomatoes, whose prices have increased by more than 0.1%, according to data published in the relevant media.

The expanded basket of goods for Guatemalan residents generally requires a monthly expenditure of GTQ 7,700 (US$995).

It is GTQ 133.33 more than last June for the same need. Guatemala is suffering from the same disease as the world, as inflation has become the new pandemic afflicting the planet.

Inflation is escalating, and the quetzal is weakening against the U.S. dollar as it maintains an exchange rate of 2.26%. Guatemala no longer has one of the thirty immutable currency units of Latin America and the world, as it did until a few months ago.

Bitcoin-based Centrals or circular economies focused on the first of the cryptocurrencies are booming in Guatemala. At least three cities in the country are promoting the use of the pioneering cryptocurrency in hopes that its purchasing power will increase over time.

Hand in hand with bitcoin, a revolution is developing: three tourist centers are trying to copy the experience of El Zonte in El Salvador, whose bitcoin beach project is giving a boost to people with fewer opportunities.

One of these communities is El Paredón, a beach in the department of Escuintla in the municipality of Sipacate, about one hundred and forty kilometers from the capital Guatemala City.

A team led by Juan Fonseca is promoting a Bitcoin-based circular economy. Their goal is to see the groundbreaking cryptocurrency become increasingly popular in the region.

They believe economic progress is only possible if currency uncertainty is eliminated and financial sovereignty is strengthened. Similarly, two Bitcoin communities are growing stronger around Lake Atitlan.

One is “Lago Bitcoin,” and the other is “Bitcoin Lake de San Marcos de la Laguna.” In these communities, people are talking about the individual empowerment that Bitcoin brings and its ability to collect funds for any purpose worldwide.

With information from Latina Press