Latin America is quickly becoming the global hub for Cryptocurrency

The Latin American region is quickly becoming the standard on cryptocurrencies integration into daily life. Currently, El Salvador has officially adopted cryptocurrency as legal tender.

The region is also the standard for Bitcoin adoption as increased financial inclusion for citizens and financial stability are the main focal points of the economy.

Additionally, remittances being widespread amongst LatAm countries provides an ideal scenario for cryptocurrency. Oftentimes remittances come with high transfer fees and lag times that crypto directly counteracts. These international transfers account for roughly 20% of El Salvador’s and Hondura’s GDPs and 11% for Mexico.

Furthermore, the region also suffers from volatile currencies due to high inflation and political factors. Although crypto is also considered quite volatile by the general public, they are still more stable when compared to the LatAm currencies. Bitcoin and Ether experienced significant surges and drops in value over the past year, but throughout it, all the currencies remain more valuable on a year-to-year basis. The appreciation of crypto further adds to the case for implementation in countries with high inflation concerning their native currency.

LatAm countries also feel more secure with crypto as they are a decentralized form of currency, meaning that it is not dependent on government-controlled institutions, banks, or other third parties.

Lastly, the most common argument for LatAm countries to adopt crypto is the number of unbanked citizens. Due to a multitude of LatAm citizens lacking access to bank accounts, these individuals cannot take part in commonplace financial services such as loans, interest earnings, and a secure place to store money.

El Salvador was the first country to integrate crypto on a country-wide scale with its acceptance of Bitcoin as legal tender. However, other countries may start acting similarly as Paraguay, Argentina, Panama, and Cuba have all considered adopting cryptocurrencies as official legal tender.

Source: Entrepreneur