Countries with weaker economies and collapsing fiat currencies are at the forefront of crypto adoption. While this phenomenon is witnessed across the globe, Latin American countries, which are facing an economic slowdown, are at the forefront to accept this new form of ‘money’
Venezuela leads the way while others follow
The economic situation of Venezuela and the collapsing sovereign fiat Bolivar has forced a lot of citizens to adopt cryptocurrencies and Dash has grabbed this opportunity with both hands as it has led the cryptocurrencies to use case in Venezuela. While adoption has been at the forefront of citizens of Venezuela, the people there are also using OTC markets to trade their monies.
According to a recent tweet put forward by Kevin Rooke, Venezuela’s P2P Bitcoin market does 157x the volume of their largest stock exchange. Venezuela’s top stock exchange did $8,117 of trading volume on Friday while Bitcoins traded on Local Bitcoins is an average of USD 1.28m
Venezuela's P2P Bitcoin market does 157x the volume of their largest stock exchange.
Venezuela's top stock exchange did $8,117 of trading volume on Friday.
Not a typo. $8,117 USD.
Venezuelans traded an avg of $1.28M of Bitcoin on LocalBitcoins each day this week. pic.twitter.com/Uu4Ed2B9V3
— Kevin Rooke (@kerooke) February 11, 2019
The adoption of cryptocurrency is increasing at such a pace in the country that, according to Dash’s CEO, Ryan Taylor
there are use cases where people have invested in Bitcoin to try and preserve the value of their money, utilizing the major cryptocurrency as a store of value and it is Dash’s adoption and quick, cheap transactions that are making it an important financial tool in Venezuela.
Just like Venezuela, other countries in Latin America are also embracing cryptocurrencies. According to the data provided by DiscoverDash, Colombia, another South American country which has a struggling economy, ranks third in the world for Dash-accepting merchant listings. Colombia’s 327 merchants are among 3,000 merchants in South America that accept Dash as a payment option.
Argentina too seems to be in pro Bitcoin mood as now millions of people in the country’s capital and beyond will now be able to pay for transport on buses, subways, trains and highway toll booths using cryptocurrencies. Payment platform Alto Viaje, which allows users to charge their SUBE smart cards, announced that it has partnered with South American blockchain startup Bitex to enable payment in Bitcoin. SUBE cards are primarily used in Buenos Aires, but transport systems in cities like Mar del Plata and Villa Gesell and some 30 other locations also accept SUBE payment.
Similar scenes are also seen in Mexico where crypto exchange Bitso had mentioned to media that some 800,000 citizens are now actively trading in digital tokens. Bitso also mentioned that its average annual growth is a staggering 522%.
Cryptocurrencies have definitely found a strong footing in South America and it looks like they would just grow vertically from here thus ultimately improving the adoption and investing in cryptocurrencies. Latin American countries are definitely setting an example for the world to follow.
Will cryptos be able to spread their wings to other countries at will, like they have done Latin America? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.