Why Are Latin American Countries Adopting Cryptocurrencies So Well?
As the years go by, there is a growing trend of more and more countries accepting to add some form of crypto to their national list of currencies. Whether that is because of high inflation levels, political instability, a lack of traditional banking services, or other factors, this trend has taken these countries, and the world, by storm. Already present in Argentina, Brazil, Cuba, El Salvador, Panama, and other Latin American countries, many are noticing the value of such an alternative currency and the impact it can have on their national economies and the lives of their citizens.
Why do Latin American countries take a chance on introducing crypto to their list of currencies, and how are they doing such a good job at it? If you’d like to learn more, stay with us as we delve deeper into this subject.
Old Issues and a Natural Fit?
Latin America has a long history of various factors contributing to national currency devaluations, which, in turn, has stimulated their high levels of crypto adoption. To grasp the full impact of cryptocurrencies on these countries, we will go over some of the most important points that steered these countries to such a decision.
High Inflation Levels
Many South American countries have had issues with inflation and hyperinflation for years, all culminating with volatile and weak currencies. Stimulated by those developments, many inhabitants of these countries are more and more stimulated to store their wealth and assets in various forms of savings.
But where once there was gold, when currencies like the bolivar or peso were plummeting, now there is crypto. With Bitcoin being among one of the most used alternatives, people are more and more moving their savings to crypto wallets in rapid progression as a means to avoid losses to their assets.
Political Instability
Due to frequent long standing political unrest, many citizens of Latin America chose the option to store their wealth and financial possessions in censorship-resistant assets. The reason lies in the fact that these are harder to seize and abuse by changing authorities.
Lack of Traditional Banking Services
South American countries have a long-standing problem with bringing the general public into banking. For example, 70% of the people of El Salvador lack a bank account.
Noticing this trend, some South American countries have promised and offered their inhabitants financial inclusion through digital means. This includes digital wallets with $30 funding and Bitcoin-backed loans for small businesses.
Cultural Behavior
Migrants sending money to their homes is a staple of cultural behavior in Latin American countries. For example, Salvadorans contribute up to 24% of the country’s GDP in this manner, with frequent transfers to their homeland. These are mainly done through crypto means such as Bitcoin or other non-traditional currencies because they are much cheaper.
Acceptance and the Benefits of Crypto Gambling
Primarily sparked by El Salvador’s initiative, more and more countries like Argentina, Panama, and Cuba are poised to follow suit and join the leap to cryptocurrencies. By offering individuals and countries an alternative to financial security, crypto has become one of the leading problem solvers for these countries.
Still, despite the benefits we already talked about, one of the main benefactors of such a widespread acceptance of cryptocurrencies will undoubtedly be the entertainment industry, more specifically, crypto online casinos.
Functioning in a digital capacity, they offer access to crypto betting services and games where individuals can play with multiple cryptocurrencies. However, the biggest plus of crypto in the gaming world is doubling the security of online casinos.
Being gaming websites, they can be accessed from anywhere around the world through normal browsers or VPN services, making the use of crypto perfect for instant and easy play.
Closing Thoughts
Cryptocurrencies are a rising force in the world. From financial security to online entertainment, it seems as though crypto is making a boom in countries in Latin America. Due to their often political and financial positions, many South American countries have now warmed up to the use of crypto, which has brought a multitude of benefits to their inhabitants and economies.
In seemingly offering an alternative to complex financial solutions to many of these countries, cryptocurrencies such as Bitcoin and others are slowly earning the trust of those who use them. In this constant wake, they are repaying their faith as a suitable alternative to other previously used traditional means of banking.
Seeing that this has become a trend that seeped into various fields, it will come as no wonder that the rest of the world may soon follow suit.
