Cryptocurrencies are becoming more than a digital trend, they are becoming an alternative to economic institutions in Latin America and the Caribbean. This region has a population of almost 650 million people in which only 51% of the inhabitants have access to a bank account. Digital currencies present a real alternative for a society without access to financial services. Promoting the use of innovative technologies is a key factor to stimulate the economic model and reduce financial poverty in the region. The total control of your assets, lower cost of international operations and its blockchain technology, which is associated with mathematical algorithms that guarantee the security of transfers, are some of the reasons why they are useful for our developing continent. In addition, they institute a flexible application and documentation verification regime, the main reason why Latin Americans are not able to open a regular bank account.
The sector of cryptocurrencies in Latin America has grown more than 100% between 2020 and 2021. Colombia, Mexico, Brazil, Chile and Argentina are the countries with the highest growth in digital investments in the continent. Creating organizations on the continent have taken on the task of issuing customized cryptocurrencies for different social purposes. For instance, SOYA (ARG) is related to soy, one of the major crops in South America. JAC (ARG) connects sellers of traditional goods (food, beverages…) through digital promotions. NBR (BRA) and JASPER (ARG) are based on a simplified and environmentally friendly mining network. GEMERA (COL) stimulates a sustainable trade for Colombian emeralds. Plasticoin (URU) seeks to reward users for collecting enough plastic for recycling. BOLI- Petro (VZLA) intended to supplement Venezuela’s plummeting national currency. MONETA (MEX) and Niobio Cash ( BRA) whose main goal is to support the development of the economy. The ongoing list of startups and projects rise by the day in great proportions. **https://www.estrategiaynegocios.net/lasclavesdeldia/1469535-330/criptomonedas-en-latinoamérica-crece-el-interés-por-las-casas-de-cambio-digitales **https://es.beincrypto.com/8-criptomonedas-creadas-latinoamerica/
Every new opportunity presents a risk and the world of cryptocurrencies has a lot to solve. Cryptocurrencies are currently mostly unregulated financial assets, they do not have the status of legal tender. Therefore they are not backed by central banks so they do not fulfill the “official” functions of money as a medium of exchange, unit of account and store of value. As a newly introduced concept, they are also becoming the target of criminal activity. According to the Federal Trade Commission from October 2020 to March 2021, around 7,000 people reported losing more than US$ 80 million in scams. Besides that The flow of cryptocurrencies takes millions of dollars away from the traditional financial system, and therefore less taxes, which translates into less money for the state coffers. This is one of the main obstacles of the developing sector. **https://cnnespanol.cnn.com/2021/06/22/moneta-mmxn-moneda-digital-peso-mexicano-criptomoneda-orix/ **https://www.bcrp.gob.pe/sistema-financiero/articulos/riesgos-de-las-criptomonedas.html
Even so, we cannot forget the great opportunity they present for our region. Cryptocurrencies do not understand borders and therefore their attraction is the complete elimination of geographical barriers in the economy. The independence of a centralized bank allows anyone (Except on government prohibition cases) to buy, sell and manage their assets wherever they are, as long as they have an Internet connection. In a long term vision this could be the beginning of a free economic area in Latin America. Money would be able to circulate freely and as a result people, goods and services would be able to circulate freely with time. Citizens would enjoy a united space, and subsequently a Latin American economic boom similar to that of the European community.
The benefits of cryptocurrencies offer a way out to many problems in the region. The inadequate management of resources and the misappropriation of funds by government officials is something that affects the entire continent. It is true that the reliability of the users of these technologies can be a major obstacle to the development of this sector. However, this has aroused great enthusiasm as a large part of the population has decided to experiment with virtual currencies. Maybe we’ll see in the future a major transformation of the current model. **https://es.cointelegraph.com/news/what-cryptocurrencies-can-do-for-latin-america **https://www.notimerica.com/economia/noticia-mitad-ciudadanos-latinoamericanos-aun-no-tiene-cuenta-bancaria-20150710150105.html **https://daviescoin.io/es/blog/the-importance-of-cryptocurrencies-in-developing-countries