A recent report by IOV Labs has highlighted the power of crypto and DeFi in the fight against inflation.
In particular, it analyses how DeFi is transforming finance in Latin American countries suffering from hyperinflation.
Hyperinflation
Hyperinflation refers to a situation of particularly high inflation to the extent that citizens use currencies other than their own.
In hyperinflation, prices rise so fast and so often that it is no longer worthwhile to denominate them in the local currency.
Instead, it is better to denominate them in a currency with a more stable value and then convert them into the local currency at the time of payment.
In general, a doubling of prices in three years is enough to qualify as hyperinflation, and the cause is usually trivially a persistent increase in the money supply that is excessive in relation to GDP growth.
In other words, it only takes three years of inflation of 26% or more to speak of hyperinflation.
Latin America
There are currently no
We współpracy z: https://en.cryptonomist.ch/2023/10/29/crypto-defi-fight-inflation/
