This week it was news that the Peruvian Congress approved the possibility that contributors and ex-payers to the Peruvian Social Security Normalization Office can withdraw up to 4,300 soles from their personal pension funds. According to projections issued by the Peruvian Executive Power, it is estimated that the funds to be withdrawn exceed 13,280 million soles (approximately US$ 3,709 million) and could be distributed among 4.7 million Peruvians.
This measure, not supported and permanently rejected by the government in power, is unprecedented within the Andean nation, although it takes place in the midst of the economic complications Peru is going through due to the Coronavirus pandemic. Just last week, Bloomberg confirmed that with the fall of its GDP of 30.2%, Peru is the developed economy with the greatest fall within the mentioned index, which shows the seriousness that the Peruvian economy is going through.
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Will Peruvians invest in Bitcoin?
Although it’s a measure that is intended to help those who are most in need and who have seen monetary complications in the midst of the pandemic, the possibility of withdrawing approximately $1,200 (the approximate change of the 4,300 soles to be given) could present itself as an opportunity for many to enter the Bitcoin market.
To expand on this particular point, we have spoken with Rodolfo Pozo, LocalCoinSwap’s advisor and resident in Peru, who has given us his perspective from the area on this issue.
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As a first comment Pozo mentioned that yes, there was a „very high probability that Peruvians will invest all or part of their pensions in bitcoin,“ although, he expressed that making this decision depends largely on people being able to educate themselves about cryptomoney, evaluate its benefits and know its limitations.
For the LocalCoinSwap advisor, the biggest impediment that Peruvians have in investing their pensions is the lack of knowledge about Bitcoin Rush and the different ways they can buy the asset. He mentioned that there is still this „fear of the new“ and the „learning curve“ that people have to go through in order to enter the market. However, he said that once a person understands the basics about Bitcoin, they don’t stop learning about cryptology and want to keep diving in.
To encourage a person to invest part of his pension in Bitcoin, Pozo said that he should be told that the asset has been chosen as the most profitable of the decade, give him an explanation about halving and its impact on the price of the asset, and also explain the shortcomings of the dollar and other fiat currencies.
Beyond what Pozo mentioned, it is not unreasonable to think about the possibility that Peruvians will use their pension funds to enter Bitcoin. As it was seen in the United States, where Americans used the $1,200 stimulus checks that the government handed out for the purchase of Bitcoin, a similar episode could occur in Andean lands.