Blockchain in Latin America: the Ethereum community elaborates on development in the region
Latin America is in a growing wave of cryptocurrency adoption, which has sparked the interest of different comapnies and experts for the countries in the region. This reality has meant that, for the first time, the Ethereum community has come together in Brazil with the Ethereum Rio event to discuss the future of the cryptocurreny ecosystem in South America.
Over ten days, the community met in Rio de Janeiro among launchpads, bootcamps, hackathons, and panels with names such as Changpeng Zhao, CEO of Binance; Eduardo Paes, mayor of Rio de Janeiro; and Eduardo Suplicy, former senator of the State of São Paulo and an avid supporter of using blockchain to make universal basic income.
Among one of the central concerns was attempting to understand how to bring blockchain to Latin Americans in a way that prioritises financial inclusion amidst the instabilities in which the countries find themselves.
Blockchain in Latin America
The growing interest in Latin America comes at a time when most countries on the continent are seeing changes in cryptocurrency regulation and increasing interest from the population in adopting crypto.
Across Brazil, over the next 12 months, a 91% increase in the number of Brazilians purchasing crypto has been projected, according to research commissioned by Sherlock Communications. Colombia ranks as the second largest “crypto country” in Latin America, with a 208% increase in individuals expected to buy digital currency or token in the next year.
While Brazil has the highest overall adoption rates, the speed of the adoption rate is even faster in other parts of Latin America. For example, in Peru, a 1100% increase can be expected. Two other fast-growing markets are Mexico, which is expected to see a 345% increase in adoption and Argentina, with a 235% increase. Meanwhile, Chile can expect a 208% increase.
Blockchain and financial inclusion
Companies and experts, with the intention of buying cryptocurrencies in the coming months, increasingly find themselves studying trends in Latin America, in an attempt to reach them, not through technology, but through the solutions and benefits that the ecosystem allows for financial inclusion.
“The atmosphere in South America is evolving and maturing, offering a space for education and the development of new talent. In Latin America, Bitcoin and blockchain appear as a solution to serious problems facing the population, such asthe great number of unbanked people and the challenge of full financial exclusion that many have to face. Understanding how the technology will benefit them in the long term should be the main motivation of the Ethereum community,” says Luiz Hadad, from Cambiatus and a volunteer at Ethereum Rio.
Recent years have seen the increased digitalisation of the economy in Latin America, integrating a large part of the population into financial systems, especially the cryptoeconomy. This is a great opportunity for the system to grow, but for this, the challenge is how to educate communities, help them in the integration process and build trust around this ecosystem, showing interest in its development and stability.
As for blockchain’s future in the region, it still has a long way to go. The lack of trust the population has for this technology is a real barrier. It is up to companies to invest in educating the public to help promote their actions and investments and, as such, reach their target audience – those who are potentially interested in investing in this new technology and learning more about it.
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¹ The data is from a new survey commissioned by our agency — Sherlock Communications — that has also generated the Blockchain Report – LATAM 2022. The report analyses recent regulatory updates affecting the adoption of the blockchain ecosystem in the region and is a source of up-to-date information on issues such as regulation and taxation, as well as providing an overview of key players, as well as adoption rates and other country-specific data.
