According to a report shared with Cointelegraph en Español, conducted by Coinspaid, numerous company executives were surveyed, who explained some of the advantages in the use of cryptocurrency transactions in Latin America.
In recent years, the popularity and boom reached by cryptocurrencies around the world It has led millions of people to seek alternatives for the use and investment in this type of asset. Especially in Latin America, where countries face high levels of inflationthe population and governments seek different measures to mitigate the economic impacts in Mercosur.
According “Statista”, 12% of Mexicans own cryptocurrencies, a number that has not changed in four years. In addition, according to a survey carried out by Coinspaid in Latin America, the lack of security and information about digital assets are the main reasons for resistance to this form of payment.
Between 1,000 and 9,000 respondents (18-64 years old) online by country, from April 2018 to May 2019 and from October 2021 to September 2022.
CoinsPaid, in its report on the use of cryptocurrencies by low-risk markets, showed the opinion of 7 executives from “C-level” of companies in digital, financial, fintech, e-commerce, Meta / Virtual Reality (VR) and mining development.
For the executives interviewed, one of the main issues driving the acceptance of cryptocurrencies by businesses and consumers is the security of payment platforms.
The interviewees also pointed out that The needs of consumers and businesses alike will be met if the crypto payment infrastructure offers fast transaction processing, as well as confirmation of payments, ease of use of the platform, and the availability of a reporting system for regulatorsthus giving reliability to the payment provider company.
Based on this, the Coinspaid platform lists 4 advantages in the use of cryptocurrency transactions in 2023:
1 – They can play an important role as protection against inflation
For market analysts, cryptocurrencies will be essential in 2023 to combat inflation. According to the Bank of Mexico (BANXICO), accumulated inflation in that country in the last 12 months, published in January 2023, was 7.8%. Faced with the uncertainty of the new objectives stipulated by the government, users and investors are looking for new ways to protect their money, and to take refuge from the volatility of the dollar.
2 – They allow decentralizing money management
Today, a large part of the population has a bank account. Forced or not, the users of the current financial system leave the money to an intermediary to synchronize it with the current economic dynamics. Something that allows banks to take advantage and monopolize transactions and payments. However, in the cryptocurrency DeFi system, each person can be their own bank, with blockchain technology, anyone can store cryptocurrencies on their computer, smartphone or even on paper, and not only that, they can also make and receive payments without intermediaries in a safe and agile way.
3 – They open opportunities to invest in different sectors
Cryptocurrencies are here to stay and have been a part of finance and investment conversations, debates and events for several years now, with increasing regularity. At the moment, entire countries are adapting their payment systems to receive, convert and drive transactions. Furthermore, blockchain experts do not hesitate to point out that cryptocurrencies are changing the world as the internet has changed it. Currently there is a higher rate of acceptance and adaptability in investors, regardless of age.
4 – They are an alternative to save money
Every day more cryptocurrencies appear that generate security for investors, because their monetary policy is immutable and is already predefined. For the same reason, they are quite “resistant” to the natural depreciation of cash or other fixed assets. In fact, in some countries, cryptocurrencies are a safe alternative to this phenomenon, since until now there was no alternative formula.
In addition to merchants, government representatives are also discussing the use of cryptocurrencies and helping to popularize the use of these assets. Recently, the heads of government of Argentina and Brazil discussed the creation of a single currency between the countries, which could even be extended to other members of the Mercosur bloc, and commercial transactions. This, for many economists, does not seem to be the best alternative, given the history of devaluation of local currencies, uncontrolled inflation and political interference in relation to the exchange rate.. However, with the single currency, the dependence on the dollar would decrease and facilitate trade in the region, thus creating the second largest currency bloc in the world, behind only the EU.
In Mexico, for example, the government is about to take another step towards digitizing money.. In 2021, Banco de México announced through its Twitter account that it planned to introduce its own digital currency (CBDC) in 2024, which is in its initial phase and is unlikely to meet its launch date.
Another point that makes cryptocurrencies another option for trade between countries is the speed of transactions and payment processing, where businesses can make remittances and pay vendors in minutes. According to CoinsPaid, receipt in fiat currencies occurs within one day and fees are close to 0.8% and 1.5% compared to the SWIFT system. And if the debates really follow this direction, we will have the opportunity to see these two countries consolidate as a reference in the sector and even serve as an example in terms of regulation for other countries.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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