Cryptocurrency, the new gold?
The emergence of cryptocurrencies has ushered in a new dawn for financial activities in the digital age. These activities have been facilitated by informal economic structures seeking to break the formal, bureaucratic and stiff economic policies of government-regulated agencies. Serving as a new breath, these cryptocurrencies like Bitcoin, Ethereum, Litecoin, Cardano and the likes have seen interests in them increase exponentially. All over the world, people are seizing the opportunity to buy cryptocurrencies. In all this craze for a slice of cryptocurrency, one region stands out in its interest and trading strength of cryptocurrencies – Latin America & the Caribbean.
Some analysts have argued that this is due to the secrecy and the love criminal enterprises have for their untraceable footprints in the region. However, regardless of these opinions, accurate or inaccurate, on thing stands true, Cryptocurrency and crypto trading in Latin America holds the record for the most significant users in the world.
Cryptocurrency and statistics
In a report published by portal Statistica, the highest number of crypto traders are in Latin America. With five countries from the region making the top 10 list of crypto users in the world. Brazil, Argentina, Chile, Mexico, and Columbia. While some like to believe that the sizeable criminal enterprise in these nations is the reason for crypto growth, the truth remains that the economic hardship that has befallen these nations is one of the reasons why crypto participation is high.
In countries like Brazil and Argentina that have witnessed difficult economic hardships, the risks associated with Cryptocurrency trading is no deterrent. Venezuela is an excellent example of a Latin American country driven to cryptocurrency due to financial difficulties. As the Venezuelan currency has witnessed a downward turn in value, citizens have turned to Cryptocurrencies for many daily activities, including humanitarian reliefs.
The lack of easy access to banking is also another reason why these Latin American nations have increased their Crypto trading participation, not minding its volatility. Especially since about 650 million people in the region, only about 113 million people have access to banking services. So, individuals find it easier to trade in cryptocurrency, especially since all that is needed is smartphones and an internet connection. The World Bank reports that about 55% of Latin America adults own a mobile phone and access an internet connection.
The awareness available in these countries is another reason why cryptocurrency trading has thrived. NGOs are springing up and are driving awareness of the benefits of crypto trading and how it could help the region increase economic stability and strength.
Cryptocurrency’s strength for remittances also adds to why Latin America is leading the way in the number of users. Over the years, the Caribbean and Latin American immigrants have sent unprecedented amounts back to their home countries. Startups in these countries have made provisions for easy transfer of funds from citizens of these countries living in the diaspora, remitting money back to their home countries.
Regardless of what analysts think, Latin America serves as a pivotal point for the breakthrough of crypto trading in becoming a mainstream actor in our world. Especially since there are so many signs that it could serve as a viable alternative to traditional financial institutions in the future, but before that happens, a lot of regulation will have to go into place. Nevertheless, the region has shown evidence that it has what it takes to lead the world into the new digital trading area, and we all need to give her the respect she deserves.