Watching the world and the progress of digital currency
The rise of digital currency in Latin America in recent years has prompted many Latin American governments to carry out digital innovation applications, lead the people into digital life, and become a major “weapon” for solving social conflicts and promoting economic development.
According to a 2019 survey by the research firm Stadista, among the top seven countries where digital currencies are most commonly used, Latin American countries occupy five seats, namely Brazil, Colombia, Argentina, Mexico and Chile.
In recent years, the governments of many Latin American countries have continuously increased the innovation and application of digital currencies. At the end of 2017, the Venezuelan government announced the use of crude oil as physical collateral and the issuance of digital cryptocurrency “Petrocoin” for international payments. In September of this year, the Colombian government approved a new sandbox mechanism for crypto trading supervision, which will be officially launched next year.
Digital currencies are increasingly entering the lives of Latin American people. Since the beginning of this year, some Argentine real estate companies have studied the use of digital currency to pay for house purchases. Under the impact of the epidemic, residents of a tourist town in southern El Salvador began to learn Bitcoin investment knowledge and promote digital currency payments. Many Mexican expatriates living in the United States use digital currency to send money to their relatives in their hometown…
Some Latin American countries have experienced economic recession and financial risks, with rising prices, currency devaluations, and high unemployment and inflation rates. People are seeking alternatives to legal tender, and encrypted digital currencies are beginning to be sought after. According to a survey, 73.4% of the Argentines interviewed said that in the current economic situation, digital currency is the most effective way to save.
Some media analysis pointed out that the promotion of digital currency development in Latin America is conducive to alleviating structural corruption in Latin America and promoting the development of social productivity.
Some institutions also pointed out the shortcomings and challenges of the development of digital currencies in Latin America. A report released in September by the blockchain analysis agency ChainAnalysis showed that in the past year, the growth rate of digital assets in Latin America has remained at a relatively low level in the world. In addition, the investigative company Insight’s report shows that some cybercriminal organizations and drug cartels use digital currency-related technological achievements and trading platforms to engage in illegal activities such as money laundering, posing a threat to network and social security.
