Crypto Week 2021: The impact of cryptocurrencies in Latin America

The world has seen how the crypto sector has made headlines around the world, becoming the center of attention of the financial sector. While China is testing its own cryptocurrency in some cities, banks in the United States are getting closer and closer to Bitcoin, and even large companies, such as Tesla, have bet on this currency. But where is Latin America?

Between 65% and 70% of the world’s population is “unbanked,” and in Latin America alone more than 260 million people rely solely on cash. “These people automatically present certain barriers. They don’t have financial products, and they cannot be part of the e-commerce market”, pointed out Jazmín Jorquera, Operations Manager of Buda.com, during her presentation “The challenge of Bitcoin and cryptocurrencies in Latam: opportunities and projections” on the last day of Crypto Week 2021 in Spain.

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Why the Bitcoin market is a good opportunity for Latin America

At the Crypto Week 2021 conference, Jorquera indicated that the Bitcoin market is a great opportunity for Latin America, not only for its investment alternative, but also for the possibility of operating remittances, where the impact of the health crisis has made it increasingly expensive and difficult to manage the process of sending money between countries in the region, through physical branches of banks or exchange houses.

“In a transfer by a traditional means the cost for every 200 dollars sent is 10 dollars. On the other hand, with cryptocurrencies, for every thousand dollars transferred, the average cost is one dollar. In terms of remittances, bitcoin is a super important challenge for Latin America”, emphasized Jorquera.

Crypto Week 2021: Going deeper into digital banking

Buda.com’s operations manager explained that while there has been significant growth in the cryptocurrency market in Latin America, reaching 7% of the global share, there is still a long way to go.

“We have seen significant growth in our users. We have 40,000 active clients per month, so it shows that there is interest, that people are coming.”

He added that, “we expect to continue with this increase in Bitcoin adoption in the future, to get governments to work on adequate regulations, and that in time, banks will become involved as strategic partners to solve problems in the traditional world,” concluded Jorquera.

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(Featured image by WorldSpectrum via Pixabay)

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First published in Zoom Tecnologico, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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