Bitcoin use cases in Latin America

We are going through a complex economic moment in international terms as a result of various factors external to the economic markets such as the armed conflicts in Asia and Europe, the energy crisis, among others.

The Virtual Asset Market has proven to be one of the fastest growing markets from the start of the pandemic to the present.

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 inflation levels.

The lack of financial inclusion in the Latin American region is usually characterized by the impossibility of access to traditional banking systems by users, 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 by economic power or purchasing power by users.

Bitcoin has proven to be one of the assets with the highest adoption and rapid growth by consumers within the Latin American market.

It has not been characterized as the first digital currency but also as a possible solution to structural problems within the Latin American region.

It is estimated that about 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 within the Latin American region is changing and more and more users and merchants decide 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 exchange or fiat currency, the value of Bitcoin does not depreciate as a result of traditional monetary issuance systems.

Thanks to the BTC deflationary monetary emission system, users will be able to save in BTC without counting on the inflationary impact of traditional currencies.

Bitcoin as remittances

The sending of remittances in the Latin American region has been characterized as one of the main economic markets in Latin America.

Latin American economies tend to be nourished by income sent from abroad by consumers around the world.

Bitcoin offers users the possibility of being able to send and receive money instantly, in this sense it is how Bitcoin has begun to change traditional money sending schemes.

What do the experts think?

Renata Rodrigues, Global Community & Education Lead, Paxful, says the uses of Bitcoin in Latin America are diverse—people can use Bitcoin as a means of payment, carrying out transactions in a safe, concise and effective way. It can also be used as a provider of liquidity through arbitration and to remit money abroad. The fundamental through line through all these use cases is financial education. That’s why I’m committed to the belief financial freedom of choice will spur Bitcoin adoption.

Marcos Bravo Catalan, Founder of Beps Global Consultants, Says “We are in a time of change, we must realize that traditional financial markets are in a time of evolution. The new agents of change are fintech, we must realize that the needs of users are evolving and Bitcoin has come to revolutionize the financial markets”.

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