Blockchain in Colombia: Equalizing Economic Power?

Latin America is one of the leading regions in the world in terms of ownership of NFTs (Non Fungible Tokens), and many of the innovators of this movement are women. NFTs are attractive to many in Latin America because they are seen as low-cost investments that provide utility to their owners while hedging against inflation and volatile market conditions.

And Colombia is a good example of this new economic direction.

“Blockchain and cryptocurrencies have been seen as an alternative to protect wealth,” said economist Carolina Cifuentes. “Latin American economies are seeing their local fiat currencies fall at a faster rate than anywhere else in the world. We’ve seen this in Argentina, Venezuela and Colombia.”

“It is estimated that more than 3 million people in Colombia own cryptocurrencies. It is likely that this figure is underestimated since a large amount of these transactions can be anonymous, says Cifuentes. “According to the latest research carried out by Finder, 8% of Colombian adults with access to the internet own an NFT.”

Blockchain development is supported by local banks and governments, the most famous example being El Salvador which accepts Bitcoin as a legal currency.

Cifuentes also argued against a misconception common in developed countries that the cost of NFTs and cryptocurrency can be a barrier to entry in Latin America, as there are many alternatives at lower price points, with Popular being an example. It is also a way for artists to gain exposure for their art outside their home country, which is difficult without access to large galleries and museums.

Popularte is an NFT collection that seeks to bring more relevance to Latin American talent and culture on the web3 and NFT space. Popular is a minimalist pop art collection with 5454 unique NFTs. Popular highlights the talent and character of the Latin American culture through its more than 400 elements (moves) that bring the NFT collection to life.

The foundation was a family affair Annabel Rondón, Victor Rondón, Victoria Rondón, Kiany Mora and Carlos Mijares are all related by birth or marriage and they claim that they are able to work together by separating family and work life.

In 2016, this family bought machines to mine bitcoin and since then has been interested in using the blockchain and Web3 technology to increase the promotion of Latino culture. They are playing the long game, and co-founder Annabel Rondón is looking past the recent volatility.

“In all industries there are times of growth and times of recession. And if you don’t have a motive that goes beyond the money itself, you won’t survive downturns. Let what moves you go beyond the money itself. The generation of money is a consequence of the value generated or delivered to society, said Annabel Rondón. “Then these moments of recession will just be a space to grow and strengthen and then take advantage of the peaks of the market.”

Rondón shares the following tips for dipping your toe into the NFT market.

1. Take time to learn before investing in the NFT market. Look for a community to guide you and give you advice. A society with a proven track record.

2. When investing in NFTs, always study the project, read its whitepaper, get to know the team behind it, and learn about its utility or benefits.

3. When creating NFTs, choose very carefully the blockchain to create on, taking into account the gas fee (the fee required by the blockchain to perform a transaction) and operating costs.

To date, Populart’s investors are half male and half female, which fits in with their goal of celebrating female participation in Latin culture. They want to create a shift where more and more creators have the opportunity to live and create in Latin America for the local market as opposed to exporting work, labor or immigration.

This opportunity is not lost on local authorities and entrepreneurs.

“The main banks, with government support, started earlier this year pilot projects to incorporate cryptocurrencies into their services. The government is actively creating study programs to prepare the youngest population for careers in the Web3 industry, Cifuentes said. “There are also many events, conferences and places like Hash House, in Medellin, Colombia, where local and international blockchain creators meet to exchange ideas.”

NFT, blockchain and Web3 are more than buzzwords in Latin America, they are tools that people use to reshape their economy so that more of the population can participate and share their creativity.