Bitcoin Use Cases in Latin America
We are going through a complex economic moment internationally as a result of various factors outside the economic markets, such as the armed conflicts in Asia and Europe, the energy crisis.
The Virtual Asset Market has proven to be one of the fastest growing markets from the start of the pandemic to today.
In this sense, more and more people decide to start investing in digital currencies by choosing to open an account in an exchange or in a virtual wallet.
The Latin American region has been characterized as one of the regions with the greatest economic problems and challenges in the world.
Some of the most complicated problems in Latin America are usually the lack of financial inclusion and high levels of inflation.
The lack of financial inclusion in the Latin American region is usually characterized by users not having access to traditional banking systems, in this sense something as simple as opening a bank account can become a very complex task.
Inflation is usually characterized by generating a strong loss of value in economic power or purchasing power of users.
Bitcoin has proven to be one of the assets with the highest adoption and rapid growth of consumers in the Latin American market.
It has not been characterized as the first digital currency, but also as a possible solution to structural problems in the Latin American region.
It is estimated that around 10 percent of the world’s population has operated or is currently operating with virtual assets.
The most notable use cases for Bitcoin in the Latin American region have been as a means of payment, savings and sending remittances abroad.
Bitcoin as a payment method
The traditional payment system in the Latin American region is changing and more and more users and merchants are deciding to start making and making payments with BTC.
BTC payments usually have higher speed levels, greater security and high levels of privacy as obvious advantages over traditional payment systems.
Bitcoin as a savings method
Unlike foreign currency or fiat currency, the value of Bitcoin does not fall as a result of traditional monetary issuance systems.
Thanks to BTC’s deflationary monetary emission system, users will be able to save in BTC without accounting for the inflationary effect of traditional currencies.
Bitcoin as money transfers
Sending money transfers in Latin America has been characterized as one of the most important financial markets in Latin America.
Latin American economies tend to be fueled by income sent from abroad by consumers around the world.
Bitcoin gives users the ability to be able to send and receive money instantly, in this sense it is how Bitcoin has begun to change traditional remittance schemes.
What do the experts think?
Renata Rodrigues, Global Community & Education Lead, Paxful, says that the use of Bitcoin in Latin America is diverse – people can use Bitcoin as a means of payment, carry out transactions in a safe, concise and efficient way. It can also be used as a liquidity provider through arbitration and to transfer money abroad. The basic thread running through all of these use cases is financial education. That’s why I’m committed to the belief that economic freedom of choice will spur Bitcoin adoption.
Marcos Bravo Catalan, founder of Beps Global Consultants, says “We are in a time of change, we have to realize that traditional financial markets are in a time of evolution. The new agents of change are fintech, we have to realize that users’ needs are evolving and Bitcoin has come to revolutionize the financial markets’.
