What’s The Main Reasons for Latin America’s Growing Dependency on Cryptocurrency and Blockchain Technology?

The growth of cryptocurrency is witnessing unprecedented levels of high and the trend is only going stronger overtime. It’s almost incredible to see a virtual currency flourishing like this and paving the way for a global change in the financial system. Beating all the odds, Crypto and blockchain technology is on its way to becoming one of the major influences on the financial market and the trend is significantly visible in Latin American countries. For more information sign up to Bitcoin Compass.

Cryptocurrency in Argentina
photo credit: Julián Amé / Unsplash

The reason for this growth of Blockchain technology are many but for starters, it’s the basic nature of the cryptocurrency which is shrouded in mystery and secrecy. When it was first introduced in the market it got named as a currency used for illicit purposes as it is unregulated, opaque, untraceable, secret, and mysterious. Now, for the very same reasons, the currency is gaining huge popularity in Latin American countries which are famous for such activities.

While many would see this as the only reason for the growth of Crypto but there is so much more to it. It is successfully breaking those norms of being an illicit and illegal currency and is on its way to change the shape and course of the global financial system for good.

The currency is unregulated and there is little human intervention in its processing. All the data is stored in the ledger which is shared over a network hence it offers ease and convenience of use while reducing delays and expenses. For these reasons, the Blockchain technology is being adopted in many industries.

It’s the basic nature of the currency and the technology that is attracting people for good now. They want to replace the year-old traditional system with this highly-advanced, sophisticated and innovative technology to add ease, convenience, and viability to the processes. For instance, the Latin American countries are using blockchain technology to curb down corruption, frauds, thefts, and robberies.

The facts are visible and out in the open. According to a recent survey, it was found out that Latin America has become a hub for crypto trading and blockchain technology innovations. The region accounts for holding the maximum number of Crypto coins and it is only going stronger. The most significant players in this race are Brazil, Colombia, Argentina, Mexico, and Chile.

Another reason for the region’s growing dependency on Blockchain technology and Cryptocurrency is their falling economy. The numbers in the economy are very disappointing and worrisome and for this reason, the citizens of the country are falling back on some alternate source of income which could help them get out of this situation. The growing unemployment, the increasing rate of crimes are reasons which are pushing people into this trade which at the moment looks like a savior from this depleting state.

cryptocurrency industry

Now, there is another very peculiar reason for which the Latin Americans’ are using Cryptocurrencies. Many of them stay away from home in foreign lands and they have to send home money. If they use the traditional payment methods it’s very expensive, tedious, and risky. It comes under the scrutiny of the government and they have to be answerable for every transaction that takes place. While on the other hand, Crypto is so much easier in that context, you can just send the money to any country with a simple click, there is no delay or currency conversion problem which has simplified the problem considerably.

In fact, there are dedicated companies which are working in the same space. For instance, there is this start-up called La PlataForma which allows users to transfer funds to family or friends in a variety of the region’s countries via blockchain technology. It’s doing pretty well as the need for such a business was called for and needed.

Another cause for people in Latin America being pushed into this trade is that the lack of proper banking services in the country. While a major chunk of the population has access to a mobile phone and internet connection, not even half of the population has a bank account. So, we can assume in which this direction the crowd is expected to move. Crypto and Blockchain technology offers easy entry, access, and usage. It’s simple and it’s for everyone and that’s what makes it so popular.

If the same trend continues which is most likely the case, the currency will become even more popular in the region and Latin America will be on its way to become a global leader and game-changer in the Crypto and Blockchain technology space.