The Blockchain-mania Consuming Latin America

The President of Cuba, Miguel Diaz-Canel (left) meets with the President of Venezuela, Nicolas Maduro (right) in Caracas, Venezuela.

The year 2020 has been a most important year for the progression of blockchain and cryptocurrency. The global pandemic has shown the world the failures of global financial institutions. People have thus turned to cryptocurrency for its democratising, decentralised, and largely unregulated qualities. Perhaps the most crypto-friendly region has been Latin America. More and more countries on the continent are passing legislation on virtual currency and welcoming in international cryptocurrency exchanges.

Crypto-friendly environment

Contxto reported that Latin America has the most cryptocurrency users in the world. People have turned increasingly to cryptocurrency as a means of stabilising their wealth. This comes after many Latin American states have seen major fluctuations in their fiat currencies. There is no greater example of this than Argentina. With its weakened banking institutions and devaluating fiat currency, more and more Argentines are investing their money in the stability of virtual currency.

Brink News further posits that cryptocurrency has seen such prominence in Latin America due to the ease of sending it abroad to a growing diaspora.

Brazil has also seen a similar pattern to Argentina. Many ordinary Brazilians welcome cryptocurrency as the country suffers from the financial effects of the global pandemic.

Meanwhile, Venezuela has been in a class of its own as a developer of blockchain and cryptocurrency, with their very own virtual currency, the Petro, backed by the country’s vast reserves of petroleum.

The future of Latin America’s blockchain revolution

As most of the developing world turns increasingly to the blockchain world, it will be no surprise that Latin America retains its accolade as perhaps the most crypto-friendly region in the world. Coindesk surmises that as fiat currencies weaken, currencies like Bitcoin might emerge as stable alternatives for everyday use, much as the dollar has been used in failing economies like Lebanon and Zimbabwe.

Mexico and Chile too have seen crypto booms, as they welcome in more crypto exchanges. Moreover, Cubans continue to see virtual currency as a welcome alternative in the country’s distressed economy.

With increasing popularity all over the continent, the crypto future looks bright for this region.

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Raïs Tarek 87 Articles
Journalist and lawyer, with a passion for global politics, economics and current affairs.