How has Latin America adopted cryptocurrencies?

A clear example of the use of cryptocurrency in Latin America is Venezuela, which only in 2012 registered an inflation of 686.4%. In this country, many citizens use the sending of remittances from abroad through cryptocurrencies, which guarantees coverage against inflation and the intervention of traditional banking institutions. During May 2012 alone, BInance reported that trades from its platforms had increased by 75% just during that period.

This trend adds to the growing number of businesses across the continent that have adopted cryptocurrency payments.

In countries like Argentina, where the adoption of the dollar as an alternative currency is prominent (8% of the world stock), the adoption of cryptocurrencies has accelerated notably. This country is also recognized for the rise in recent times of bitcoin mines.

What is the government response to the adoption of cryptocurrencies?

While the decentralized economy advances, regulators are left out of the game. The government response throughout the American Continent has been very diverse. While in countries like Bolivia the use of cryptocurrencies has been completely prohibited, in Argentina cryptocurrencies are recorded with 15%; and in Brazil, for example, the operation of the blockchain is widely accepted at the government level.

On the other hand, contrary to Argentina, in countries such as the Dominican Republic and Colombia, there is no regulation on the use of Blockchain . A curious case is that of Colombia, where despite the fact that there is a clear government position against cryptoactives, there is also the largest network of Bitcoin ATMs in the entire continent. The great advantage of cryptocurrency trading, is that it is not subject to taxes.

Venezuela represents a paradigmatic case, since despite international sanctions and its political instability, it has implemented at the governmental level a body to regulate the adoption of cryptoactives among the population, where there is extensive knowledge of the blockchain technology and most merchants operate this way. The Venezuelan government installed the use of Petro as a national cryptocurrency where public officials receive part of their salary.

The perspective of the use of cryptocurrencies in Latin America compared to its adoption in developed countries, provides a clear overview, which explains how it is adopted in each part of the world. While in European countries the blockchain technology represents a simple financial alternative, Latin America shows its adoption of cryptocurrencies as the main tool capable of solving the many financial challenges facing their economies.