LocalBitcoins data shows that the weekly trading volume in Chile’s fiat currency recently touched a new all-time high.

Cryptocurrency market data platform CoinDance shows that LocalBitcoins volume in Chile reached a new record of over 330 million Chilean pesos in the week ending on April 4.

Chile LocalBitcoins volume in Chilean Pesos. Source: CoinDance

It is worth noting that these figures are also influenced by the depreciation of the Chilean peso. According to data from foreign exchange website XE,  the currency fell by over 6.45% against the dollar in the last two months alone — and has lost a whopping 27% over the last year. 

According to cryptocurrency market data website CoinLib, Chilean cryptocurrency exchange CryptoMarket has also seen its trading volume increase significantly in recent weeks. Daily trading volume in U.S. dollars on the platform grew by nearly 270% compared to March 30, reaching about $281,000.

Local residents appear to be turning to crypto as they search for an asset that can protect their savings from depreciation.

As the depreciation of its fiat currency suggests, Chile is currently experiencing significant economic hardships. Bloomberg recently reported that the country’s problems are further exacerbated by the ongoing COVID-19 pandemic, which forced Chile into a lockdown enforced by both police and army forces. Still, Bloomberg states that the plan is apparently working:

“Thus far, there have been just 160 recorded deaths in a nation of 18 million. There were 464 new infections announced Wednesday, compared with a peak of 534 on April 16, bringing the total to 11,296. Like everywhere, the true counts are probably higher.”