What Makes Latin America An Attractive Market for Cryptocurrencies? [¿Qué Hace a Latinoamérica un Mercado Atractivo para Las Criptomonedas?]
Cryptocurrencies are one of today’s hottest topics – seemingly in every corner of the globe. Bitcoin continues to be the most popular – and certainly the most well-known – though digital currencies have been blossoming at an unprecedented pace recently. There are currently more than 16 million Bitcoins in existence, and it is expected that there will be more than 22 million by 2022. Worldwide acceptance is growing, with over 9,800 businesses registered on the Coinmap website, compared to 2013 when there were only 133 businesses registered.
Cryptocurrencies in Latin America
Interest in cryptocurrencies in Latin America is growing too, as the volume of Bitcoin payments has increased in countries like Argentina, Chile, Brazil, Colombia, Venezuela and Mexico. Additionally, countries including Ecuador, Bolivia, Paraguay, Peru and Uruguay are also showing an interest in digital currencies, to the extent that they have businesses registered for transactions using these means. However, regulation remains a controversial subject across the region.
Transactions with cryptocurrency have reached unprecedented highs in several Latin America countries over the past year. According to criptonoticias.com, on May 27 transactions amounted to approximately USD $99,000 in Argentina. Around a similar time, Brazil and Colombia, reached USD $600,000 and USD $717,000 (for a one-week timeframe), respectively.
There are a couple of explanations for this substantial growth. One is high inflation in some Latin American countries as well as restrictions imposed upon monetary operations. Another is trust in local currencies, which has decreased, resulting in digital currencies becoming a new alternative for investment or savings.
Venezuela is a prime example, as citizens concerned about money losses due to the country’s economic crisis have found something of a lifesaver (or more precisely, a money-saver) in Bitcoin. Many consider buying cryptocurrencies as a new and valid means of savings. Meanwhile, more stable countries like Brazil, Argentina and Colombia are also considering digital currencies as an alternative to increase income.
Chile – much like Brazil, Argentina and Colombia – considers Bitcoin as an investment opportunity. However, here the use of the Ethereum has notably increased, as experts see in this cryptocurrency a good way to protect their resources, while also forecasting potential future gains it may provide.
Another sign that cryptocurrencies have succeeded in Latin American is related to exchange markets. There are currently more than 26 such markets across the region, and countries like Argentina, Brazil, Colombia, Panama, Paraguay and Mexico already have cash machines that allow buying and selling of Bitcoin.
The growth of digital currencies here is indisputable, but there are issues that cause concern amongst the authorities and governments of various countries. The main concern is cyber-laundering, because transactions in Bitcoin or other cryptocurrencies are anonymous – and are not yet widely accepted. This has made it possible for digital currencies to be used for illicit or corrupt activities, unauthorized collection of resources, money laundering or terrorism financing.
Many in the region still consider digital currencies a taboo subject, because they are not legal in some Latin America, as governments recognize only the national currency. But cryptocurrencies are part of the 21st century digital revolution and I believe they will gain greater importance with time.
What’s next with cryptocurrency?
Some countries – for example Estonia – are working on their own cryptocurrency (in this case estcoins), at the same time as some Latin American countries are discussing whether cryptocurrencies should be allowed.
On the other hand, banks need to be more receptive about blockchain and start planning new strategies. History has shown us that technology and digital inventions have revolutionized the way we do things, and cryptocurrency has the capacity to do the same.
In my view, governments and banks across Latin America should embrace the growing importance of digital currencies. Continuing growth is indisputable, and in the years to come, there will be new cryptocurrencies in the market – even those created by governments themselves.
¿Qué Hace a Latinoamérica un Mercado Atractivo para Las Criptomonedas?
Las criptomonedas, es uno de los temas más controversiales y de moda en la actualidad. Aunque existen varias monedas digitales, la más popular es Bitcoin, la cual ha tenido un crecimiento anual sorprendente desde su creación en el 2009. Actualmente, existen más de 16 millones de Bitcoins alrededor del mundo, y se espera que para el 2022 sean más de 22 millones. Además, estas han tenido una gran aceptación a nivel mundial, pues existen más de 9800 comercios registrados en la página Coinmap, los cuales reciben esta moneda como medio de pago, mientras que en el 2013 solo habían 133 registrados.
Criptomonedas en Latinoamérica
En Latinoamérica el interés por las criptomonedas ha ido creciendo, pues el volumen monetario de pago con Bitcoins ha incrementado en países como: Argentina, Chile, Brasil, Colombia, Venezuela y México. No obstante, el tema de regulaciones aún sigue generando controversia en algunos de estos países. Por otro lado, países como: Ecuador, Bolivia, Paraguay, Perú y Uruguay empiezan a mostrar un interés por las monedas digitales, tanto así que también cuentan con comercios registrados para realizar transacciones por este medio.
Las transacciones con criptomonedas han alcanzado niveles máximos sin precedentes en varios países de Latinoamérica durante el último año. Según criptonoticias.com, el pasado 27 de Mayo, las transacciones ascendieron aproximadamente los USD $99.000 en Argentina. Por otro lado, Brasil y Colombia alcanzaron USD $600.000 y USD $ 717.000 (por un periodo de una semana de diferencia), respectivamente.
Las principales razones para poder explicar este crecimiento son: la alta inflación de algunos países latinoamericanos, como también, las restricciones impuestas a las operaciones monetarias. Adicionalmente, la confianza en las monedas locales ha disminuido, por lo cual las monedas digitales han significado una nueva alternativa de inversión o de método de ahorro.
Venezuela, es un gran ejemplo de lo que está sucediendo, pues muchos ciudadanos preocupados porque su dinero pierda valor debido a la crisis que está atravesando el país, han encontrado en el Bitcoin un salvavidas y consideran la compra de criptomonedas, como una nueva forma de ahorro. Mientras tanto, países como: Brasil, Argentina y Colombia consideran que las monedas digitales, son una excelente alternativa para aumentar sus ingresos debido a la valorización que han tenido y que se espera que siga aumentando con los años.
Chile, al igual que Brasil, Argentina y Colombia considera que las criptomonedas son una buena alternativa para aumentar los ingresos. Sin embargo, el Ethereum también ha venido aumentando en este país, puesto que los expertos ven en esta moneda una buena forma de proteger sus recursos y al mismo tiempo, prevén el potencial futuro que esta divisa pueda desplegar.
Otra muestra de que las criptomonedas han conquistado el mercado latinoamericano son las bolsas cambiarias (exchanges). Actualmente, existen más de 26 bolsas cambiarias en el continente, esto sumado a que países como Argentina, Brasil, Colombia, Panamá, Paraguay y México ya cuentan con cajeros automáticos que les permiten comprar o vender Bitcoins.
Aunque su crecimiento es incuestionable, existen temas que preocupan a las autoridades y gobiernos de los diferentes países latinoamericanos. La principal preocupación es el ciberlavado, debido a que las transacciones en las plataformas de Bitcoins o de criptomonedas son anónimas y aún no han sido aceptadas en muchos países, lo que ha permitido que las monedas digitales sean usadas para actividades ilícitas o fraudulentas, captaciones no autorizadas de recursos, lavado de dinero o financiación al terrorismo. Además, aún hay mucha desinformación respecto al tema, lo que ha facilitado engañar a las personas.
A pesar de que el tema de las monedas digitales sigue siendo tabú debido a que no son legales en Latinoamérica y no existe una entidad que las regule, las criptomonedas se unen a la gran revolución digital del siglo 21 y sin duda, seguirán adquiriendo mayor importancia a medida que pase el tiempo. El mercado latinoamericano es un ejemplo de lo rápido que pueden crecer y del atractivo que están generando en la población mundial.
¿Qué acciones se deben tomar frente a las criptomonedas?
Algunos Países, como Estonia, ya trabajan en su propia moneda digital (en este caso estcoins), mientras que lamentablemente en latino américa seguimos debatiendo si deben ser aceptadas o no.
Por el otro lado, los bancos deben ser más receptivos sobre el blockchain y empezar a ajustar sus nuevas estrategias en base a estos cambios. La historia nos ha enseñado que la tecnología e inventos digitales han revolucionado la forma en que hacemos las cosas y las criptomonedas lo harán de igual forma.
En mi punto de vista, los gobiernos y bancos deben dejar de negar la importancia de estas nuevas monedas y empezar a aceptarlas, ya que muchos países y negocios ya empezaron. Su crecimiento es incuestionable y a medida que pasen los años habrá nuevas versiones de monedas digitales en el mercado, incluso aquellas creadas por los gobiernos.
Related Blog Posts
Payments Fraud and Friction: A Delicate Dance
One of the biggest challenges for retailers, at least when it comes to payment acceptance, is the need to provide a frictionless customer experience that does not come at the cost of customer security. Additionally, retaining a competitive and distinctive edge requires flexibility across markets and segments.
Cutting the Cost and Complexity of Merchant Payments – But Not the Customer Experience
New research from ACI and Ovum, released this week, highlights that many merchants in 2018 are investing in creating operational efficiencies in their payments systems. But the question is, as they strive to simplify systems and cut costs, will customer experience suffer?
Cross-Border eCommerce Expansion: A Fraud Perspective
For merchants that are expanding their online presence overseas, enabling the right locally-preferred alternative payment methods and connecting to local acquirers can be a critical determinant of success. But without considering fraud management strategy in tandem with payments strategy, the road to cross-border success could be a bumpy (not to mention costly) one.
Driving IoT Progress at Mobile World Congress
I felt fortunate to be among the 107,000 delegates from 205 countries attending this year’s Mobile World Congress, held earlier this month in surprisingly chilly Barcelona.
Showcasing everything from connected cars, to virtual reality, 3D printing to amazing app ideas—the exhibition and conference content at MWC gave visitors a chance to discuss the future of mobile and explore the world’s most cutting-edge, mobile-enabled products and services.
Telcos Have a Unique Opportunity to Drive Mobile Payments
We are witnessing a significant and inevitable shift in digital payments towards mobile commerce. In the next ten years, we will see an exponential expansion in the number of devices and applications we will use to make mobile payments. You could pay for your groceries on your mobile, for delivery at home, then two days later receive a message from your fridge alerting you that the milk is running low. By the time you get back home, a new bottle of milk could be waiting for you, thanks to real-time delivery, even by a drone.
What Do Consumers Want and How Are Retailers Meeting Their Payments Demands in 2018?
What do consumers want from their payments in 2018? That’s the million-dollar (possibly more) question merchants everywhere are asking themselves and it’s the question Retail Week Connect asked 2,000 consumers and 30 senior retail executives. Here are some key takeaways:
Another Day, Another ‘Pay’? Why Google Pay Could Be Different
The official announcement of Apple Pay back in late 2014, and Android Pay just a few months later, was the catalyst for seemingly endless prognostication on the dawn of a new era in mobile payments. Along with a clutch of ‘Pay’ cohorts, these digital wallets were widely expected to transform shopper behavior, nudging us closer to cashless world where the physical wallet could be left to collect dust at home.
Ripe For Change? New Frontiers in Merchant Payments [Klarna Q&A]
Consumers often have a love/hate relationship with online shopping. They are easily frustrated when the checkout experience does not deliver the convenience they expect, and delighted when the online journey – including payment – is smooth and frictionless.
More than Half: the Story of Cyber-Attacks and Global Organizations in 2017
Three words. It might not seem enough to cause a rethink of your 2018 cyber-security strategy, but it should. Why? Because according to the latest Forrester report, “Top Cybersecurity Threats for Retailers in 2018,” attackers breached more than half of all global enterprises in 2017.
More. Than. Half.
Payments Presents a Towering Opportunity for Telcos
Mobile phone usage is soaring and, with around a third of the world’s population and up to 65 percent of Western Europeans estimated to own smartphones in 2017, it is fairly safe to conclude that digitally-connected consumers are a strong and growing group.