Could Algeria Lift its Roadblock on Bitcoin After Recent Economic and Political Turmoil?
Algeria, one of the most important producers of oil and gas in North Africa, is currently living a difficult political and economic situation. This social unrest could be a good moment to lift the ban on Bitcoin (BTC).
Could Algeria Lift its Bitcoin Ban?
Algeria is experiencing a political, social and economic turmoil. People in the country are going out to the streets to block the re-election of the president Abdelaziz Bouteflika. Although the president promised to step down from the next elections, demonstrations in the country continue.
The situation that Algeria is currently experiencing seems similar to what Egypt and Tunisia lived a few years ago, in 2011. The so-called Arab Spring makes reference to protests that took place in these countries where millions of individuals demanded the resignation of the Egyptian president Hosni Mubarak, who was the acting president since 1981.
It seems that Algeria is following a similar pattern. The country has been run by an old president that was supported by corrupt political parties. Moreover, the economy is struggling and the solution that the government implemented is related to clientelism and paternalism.
Back in 2018, Algeria and Morocco banned Bitcoin. Individuals in the country are not allowed to transact or use Bitcoin. Nonetheless, the digital asset has been used by many individuals in several countries when the situation becomes more difficult. One of the most popular cases is linked to Venezuela, where people started to use Bitcoin as a store of value and to avoid hyperinflation.
People could start purchasing Bitcoin in order to avoid an economic crisis in the country and hedge against populist policies such as printing money in excess. Although Bitcoin is forbidden in the country, LocalBitcoins continues its operations in the country.