Why Latam remain most bullish on crypto

 

The fall of the crypto market does not seem to stop. This reality has oriented investors' vision to other verticals such as gold and real estate. However, in Latin America, we have a crypto perspective that goes beyond the ups and downs. We are oriented to a long road of development, adoption, and decentralization capable of boosting the economic dynamics of the region.

Cryptocurrencies continue to fall out of control, increasing concern among Latin American savers and investors. However, the boom of the decentralized ecosystem is far from over in the region; on the contrary, we are taking advantage of the new technology: from competitive adoption indicators - especially among remote workers and remittance users - to the use of blockchain in public administration, or even as an alternative currency.

This scenario of contrasts leads us to rethink the system, establish new dynamics and generate initiatives that respond to the demands of a market with ample opportunity, defined by a 60% unbanked population and 35.8% of people willing to buy cryptocurrencies if the country scenario guaranteed greater trust, according to CoinsPaid.

It is time to take a new path.

 

In a scenario where many savers have lost their trust in government-generated currencies and high U.S. monetary issuance paints a near-future of rising inflation and uncertainty, the migration to the decentralized financial world is happening. Today, cryptocurrencies have the potential to be used as an asset class for investors or a standard for saving in safer currencies. Regardless of the current volatility, many savers consider USDT and USDC to be safer than their local currencies. In addition, non-custodial exchanges and connections to digital wallets facilitate this decentralization.

According to the Global Cryptocurrency Adoption Index 2021 of the firm Chain analysis, Latin America is the sixth largest crypto economy in the world, with 9% of global transactions and remarkable growth in key markets such as Mexico, where 15% of the population owns some digital asset or Chile, where 400% growth was recorded in 2021.

 

Likewise, three other Latin American countries: Venezuela, Argentina, and Brazil, are in the top 20 in the adoption of cryptocurrencies, and the emergence of companies linked to Blockchain technology is beginning to stand out in the region. This trend drives the population to higher productivity levels, increases transactions in foreign currencies, and guides new employment opportunities, especially for younger people.

A new job outlook

 

The economic crisis of the last two years accelerated the digitization of markets. Remote work is here; freelancers and digital nomads continue to grow monthly. The International Labor Organization estimated that, by the worst moment of the crisis, in the second quarter of 2020, some 23 million people teleworked in the region, representing between 20% and 30% of the salaried population in Latin America.

However, the remote work population and freelancers are just the tip of the iceberg, a people with a high level of education, excellent technological adoption, and benefits that allow them to take on responsibilities from home. In many cases, providing services internationally in other languages. On the other hand, a large segment of the population subsists on remittances, a market affected by high commission rates of around 15%.

For both cases, some who need to collect remotely and others who send and receive remittances, cryptocurrencies offer a cheaper and safer way to send money internationally. With new options to be able to collect in USD and pass that payment to cryptos like Ping Latam and the possibility to connect it with

Latamex and receive that amount in local currency, it is now faster and cheaper to receive money from abroad with cryptocurrencies than with traditional services like Western Union or Moneygram.

This is only the beginning of a long road of development, where the focus is not on the ups and downs of the market but on the emergence of a new economic dynamic that enhances the possibilities of the population and positions the crypto world as the market with the most significant long-term investment potential.