A weekly section discussing how general events can influence the near-term future of cryptocurrency sector
Debt Crisis Lurks Under 14 Countries
According to the available reports, there are about 14 countries that are heading towards a Greece-like debt crisis. Their foreign debts are surplus, and the current accounts deficits are mounting — both of which are making them vulnerable to a economical crisis. These countries include: Bhutan, Cape Verde, Dominica, Ethiopia, Ghana, Laos, Mauritania, Mongolia, Mozambique, Samoa, Sao Tome e Principe, Senegal, Tanzania and Uganda. We believe these events will directly impact the cryptocurrency markets.
Greek Parliament Paves Way for New Bailout
The Greek Parliament approved a series measures demanded by international lenders as Athens received its third aid package. The new bailout includes a sum of up to 86,000 million euros. According to the IMF, Greece’s public debt would reach 200% of GDP in the coming years. This might have a depreciative impact on cryptocurrency markets.
Greece Businesses Goes Cash-only
Due to the persistence of the banking closures, many shops and Greek businesses are operating with hard cash. Purchases have generally fallen 70% since the imposition of the capital control law. Some might suggest these businesses to start accepting the cryptocurrency Bitcoin for a change.
China’s Debt-to-GDP Ratio Reaches New Highs
Chinese government’s decision to cutback interest rates and bank reserves is somewhat leading the country towards financial instability. It is reported that the world’s second largest economy is currently facing a surge in its debt-to-GDP ratio, where growth has slowed down, and delinquencies has climbed to a record 140 billion yuan (23 billion dollars) in the first quarter.