In Latin America also the trend of cryptocurrency is rising. You will be glad to know that bitcoin is now the new and best medium of sending remittances in Latin America. The countries like Colombia, Argentina, Brazil, Chile, Mexico, Venezuela and Peru are the ones that have a higher level of bitcoin adoption all over the world, as per the reports of analysis.
One of the big reasons for it is that the citizens of these countries use bitcoin as an alternate option for transferring money. According to estimates of the analysis platform, the transfers of bitcoin from foreign countries to Latin American countries have increased from 100 million dollars to 400 million dollars every month. Click here for more essential cryptocurrency tips.
Why are Latin Americans making use of bitcoin for remittances?
The supply and demand of bitcoin are increasing every passing day. It is why bitcoin prices vary so much, but still, people have complete faith in this cryptocurrency. Moreover, bitcoin is straightforward to acquire without facing any issue. All you have to do is use a suitable bitcoin exchange offering genuine services. You don’t need to pay any additional fees for buying bitcoin, and you can easily send them to other people.
One of the best things about bitcoin is that it protects its investors from facing the inflation of their countries. For example, the country Venezuela is the one that is having higher economic issues, and it also has more inflation. It is the same situation in Argentina when you credit money in a bank account. It will lose its value over some time. At the same time, bitcoin provides a way for the people who left Venezuela to send the money and receive it more stably and away from the inflationary effects of their country.
Increased adoption in Mexico
You should know that there has been an increase in the use of bitcoin over the past few years. The bitcoin exchanges of this region have seen its impression. In the last year, there were some months when the processing of country remittances was only 7 per cent. As we all know, the corridor of Mexico and the United States is probably the biggest in the entire world, so 7 per cent is quite a large number. In 2013, the company Bitso in Mexico recognized that they had more than 3 million registered users purchasing and selling cryptocurrencies. At that time, the growth of this company was so high that after it received the 250 million dollars investment, the company was at the value of over 1 billion dollars. You might not be aware that the Bitso app is usually available in the countries like Brazil, Argentina and Mexico.
Growth in Cuba
As per Erich Garcia Cruz, they are adopting bitcoin started from the people in Cuba. Erich is the CEO of BitRemesas, a P2P platform for sending and receiving money from Cuba. He says that they don’t have access to financial instruments. Yes, you have heard me right; there is no facility for PayPal, Zella, Payoneer, MoneyGram or even electronic wallets of any kind. There is a lack of payment facilitating applications, and this is the thing which led to the increase in the number of people on WhatsApp and the telegram platform which started offering the services of receiving bitcoin from the other countries and then offering them the transfers in Cuban currency. These are the people who then offer the digital coins to the other sort of groups they have who are interested in buying bitcoin for making a profit. Nowadays, the people of Cuba are using bitcoin for receiving money, doing business, and maintaining good storage of value.
The ending thoughts!
Latin America is now the region with considerable growth in bitcoin adoption. The citizens of these countries are using the P2P exchange networks to access their bitcoin. There is no doubt that bitcoin is a valuable digital currency in the cryptocurrency industry. The best thing is that they are easily accessible to the people, making them one of the faithful digital currencies to invest their money in.