ompared to European countries, the use of crypto in Latin American countries is much more constant. The reasons may vary from nation to nation, but urgent economic needs can be a big common factor. In recent years, Latin America has shown that it has the largest user population of cryptocurrencies in the world. Therefore, the impact of these digital alternatives in these societies is greater in terms of virtual mining. The behavior of these platforms due to the use of crypto in Latin American countries is very interesting and complex.
The main reason for the use of cryptos in Latin American countries would be the economic instability that most of them present. By participating in the management of cryptocurrencies, Latin Americans protect their capitals and properties, generating additional income with them. Within this financial crisis, are the well-known remittances that the inhabitants generate for their relatives abroad. Cryptocurrencies are very reliable in this sense, due to the speed and liquidity of investing money in them. As there is a large number of the Latin American population that cannot access banks, they opt for these virtual currencies. The extensive use of the Internet allows these people to secure their money in digital properties and manage them with ease. Finally, there is the interest of the youth population for newer technological options with immediate results.
Peru is the 3rd country in the world that uses cryptocurrencies to carry out monetary transactions with more security and digital speed. Regulatory financial institutions are analyzing this behavior to establish more specific rules and to seek to protect everyone. In addition to Bitcoin and Ethereum, Peru manages other virtual currency alternatives such as Litecoin, Ripple, Cardano and Stellar Lumens. The main purposes of these coins are to streamline transactions more and include more people and institutions to the market. There are several companies located in Peru that accept transactions with cryptocurrencies, mainly in the collection of the products they sell. One of them is Bike Rent Peru, which is in charge of renting bicycles and creating awareness about their use. Moloko Disco Club is a record store that also allows payment with cryptocurrencies since 2017.
In recent years, the Argentine peso has lost strength (approximately 40%) against the US dollar, seriously affecting its national economy. Added to this is the scarcity and difficulty of accessing dollars to try to create capital. With this, Argentines have been forced to look for other possible income options, such as cryptocurrencies. With this alternative, they have been able to face the weaknesses of the national financial system and the obstacles that arise. For this case, there are no regulations and standards that guarantee the security of transactions, unlike other nations. There is no prohibition on its development, but the risk of scams and hacks is high due to the lack of laws. This also applies to the difficulty of people in acquiring bank accounts to protect their money.
Venezuela is one of the countries in the world that has a very fragile and difficult economy. The importance of meeting basic needs such as health, has become difficult to meet on a daily basis. Venezuelans are among the people who have become most dependent on remittances from other countries. This is increasing more and more due to the strong forced migration that they have had to live for years. This is where the interest in managing cryptocurrencies comes in and acquiring money that allows them to stay safely. However, it is more common to find Venezuelans who handle cryptocurrencies from abroad, due to the difficulty of web access. Cryptocurrencies have served Venezuelans to respond to their inclement economic crisis and to survive.