Much of Latin America has been shaken by financial chaos in recent years. Despite the risk and volatility of crypto currency, digital assets and Blockchain technology have become a viable alternative to unstable national currencies.
Latin Americans are increasingly adopting the common use of crypto-currency, whether for hoarding, saving or purchasing goods and services.
Meanwhile, the entry barrier for crypto-currency in many Latin American countries is Immediate Edge often lower than traditional forms of financial management. Approximately half of the Latin American population does not have access to basic banking services. Therefore, a large unbanked population with WiFi access makes diving into cryptomoney much easier than opening a checking account.
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Blockchain and cryptos become a viable alternative
Latin America represents a revolutionary region for the crypto and blockchain industry, and is poised for even greater growth. Digital currency has a long way to go before it becomes mainstream.
However, there is real evidence that Latin America is taking cryptography as a serious and viable alternative to traditional currency. The region can become the world leader in efficient real-world applications for cryptomontages.
In this context, the citizens of Americalatina are the ones who have promoted adoption. As mentioned above, approximately 70% of the population is still unbanked and has little faith in today’s institutions that for decades have hampered opportunity and growth.
Thus, crypto-money and blockchain technology represent an opportunity to move away from weak state institutions that have resulted in banking crises, persistent corruption and political instabilities.
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From a decentralized finance perspective, what is so exciting about Latin America is that the people who adopt Bitcoin and other digital alternatives are not experts in cryptography and do not know the underlying technology.
This is a significant step towards widespread adoption. A large part of the public in America has turned to digital monetary alternatives such as Bitcoin for change. For many, it represents a legitimate alternative to the respective trust currency as a means of exchange for both domestic and cross-border payments.
The most common use of crypto-currencies is to send remittances abroad. Millions of users are convinced that using this type of exchange method is more favourable than traditional Swift codes.
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When you look at Argentina, for example, it’s easy to understand why a stateless, tamper-proof currency is attractive.
The southern country, beyond the fact that it still has no legal recognition, is advanced in the matter. It has commercial ATMs in Buenos Aires, a lot of bitcoin movement and the community of cryptomoney followers is growing rapidly, which forced the government to work on creating a law. The Central Bank (BCRA), the Financial Information Unit (UIF) and the National Securities Commission (CNV) are monitoring the issue.
According to Argentina’s National Constitution, the only authority capable of issuing legal currency is the Central Bank. Crypts in general, are not legal currency strictly speaking, since they are not issued by the government’s monetary authority and are not legal tender.