The bitcoin party is over. The blockchain party has only just begun
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More posts by this contributor Boom, bubble or bitcoin adoption records for fintech? The economic prospects for Latin America in are grim. The crash of the Chinese stock market has severely hurt the economy, as well — China is the Bitcoin adoption records. Many Latin Americans are turning to bitcoin as a solution, and the recent crises seem only to have accelerated adoption. Last year, adoption of the digital currency broke records in Latin America.
In Latin America, the country most known for bitcoin is Argentina. The crisis facing Latin American economies did not begin in The problems started in previous years, and administrations are continuing to impact these economies. The Brazilian economy has entered a recession that, according to the IMF projections, will be the longest since As the crisis deepens in Latin America, some governments are tightening capital controls.
The Brazilian government has announced a new tax over the payments sent out of the country including remittances, tourism expenses and other services that increases costs to 25 percent and up to 33 percent. There are other major problems for businesses and consumers making both cross-border and local payments: Bitcoin has proven to be a solution for many of the problems caused by inflation and subsequent capital controls. And while workers and merchants have turned to bitcoin first as a hedge against devalued local currencies, the technology is beginning to find a number of practical applications as a payment method.
SinceFacebook, Twitter and WhatsApp have been the main networks that have benefitted from that growth in Latin America. Argentinians and Brazilians are among the groups bitcoin adoption records spend more time on social media networks than anyone in the world.
As more Latin Americans become used to the freedom and bitcoin adoption records connection that web technologies like social media provide, bitcoin will continue to be an attractive alternative to payment systems built for a pre-digital world. Macri was the mayor of Buenos Aires before he became president, and it was during his term that the city government organized the first Bitcoin Forum in Buenos Aires in July Although bitcoin usage is growing rapidly in Latin America, it still faces several obstacles.
Another challenge to adoption is the friction for consumers to buy and sell bitcoin. Latin America stands out as a land of opportunities for bitcoin in Sonny Singh is the chief commercial officer of BitPay. Why Latin American economies are turning to bitcoin.
Seven applications for b itcoin in Latin America Bitcoin has proven to be a solution for many of the problems caused by inflation and subsequent capital controls.
As a universal currency, bitcoin has allowed consumers bitcoin adoption records shop and send money internationally. From Apple to Walmart, international bitcoin adoption records that might not bitcoin adoption records local payment options from Latin America can use bitcoin to continue to reach online shoppers in the region. Bitcoin may help Latin American tourism weather the current economic crisis.
Because bitcoin can be used by anyone with an Internet connection, it can bitcoin adoption records foreign exchange costs for both tourists and merchants. Latin American companies sending payroll payments to international workers can benefit from faster, simpler payments without the costs and delays of wire transfers. Exxon Mobil employs more than 1, people in Argentina, so bitcoin may offer it and other international oil companies a way to bitcoin adoption records easily send money to payees in Latin Bitcoin adoption records countries.
Online marketplaces like OPSkins have already seen massive success using bitcoin to send bitcoin adoption records to international vendors. Marketplaces like eBay which moved into the region in and Amazon may find bitcoin to be the best solution for payments for Latin American buyers and sellers. With capital controls, it has become difficult for businesses to pay money to suppliers and corporate offices outside Latin America. Though Latin American importers can pay for shipments upon delivery, long delivery periods can expose them to bitcoin adoption records risk of currency value fluctuations.
Multinational corporations bitcoin adoption records subsidiaries in Argentina can turn to bitcoin to reduce those costs dramatically. Bitcoin has offered an affordable way for consumers to top up these accounts without bank transfers.
The roots of b itcoin adoption in Latin America: Roadblocks to b itcoin adoption Although bitcoin usage is growing rapidly in Latin America, it still faces several obstacles.
Conclusion Latin America stands out as a land of opportunities for bitcoin in
