Citizens in South and Central America are two regions of the world that put greater faith in cryptocurrencies like bitcoin and ethereum than they do in national fiat currencies like the US dollar. It has been a noticeable trend for quite some time, but the nations that have been talked the most are Peru and Venezuela. In both countries, individuals are trying to invest in cryptocurrencies as a hedge against inflation and as a way to increase their chances of getting wealthy. Many people are willing to take a gamble if they believe there is even a 0.01% possibility that they can lift themselves out of poverty.
We recently reported that the Peruvian government is planning to move toward adopting some cryptocurrencies, while people are investing everything they have in Sol-pegged PEN and BTC. This is happening at the same time that we reported that the government of Peru is planning to adopt some cryptocurrencies. At the same time, an increasing number of Venezuelans are considering making investments in Bitcoin and Ethereum, which has led to an increase in the amount of daily trade.
We are also witnessing that Brazilians are also highly interested in cryptocurrency, as seen by the over $912 million that was spent on
Bitcoin and other cryptocurrencies in May 2022.
The government of the nation does not stand in the way of its citizens’ pursuit of additional cryptocurrency. In the first three months of 2023, the country’s central bank will conduct experiments with digital Reals, and it will also provide more flexibility to its banking system, all while gradually incorporating cryptocurrency trading into the national economy.
The new digital reality will be built in close collaboration with enterprises that deal in blockchain technology, crypto exchanges, and financial institutions to produce a new medium that will enable all actors in the economy to profit from digital currency. People who do not use banks or who are unable to use them for a variety of reasons can benefit greatly from this method of expanding their options, as it is an excellent way to do so.
It is interesting to note that Brazilians are not investing in USD-pegged stablecoins despite the country’s relatively high inflation rate (which is close to 10%). There are a lot of people that are interested in only buying Bitcoin and without diversifying their investments at all. They simply invest their money in Bitcoin and keep their fingers crossed. Even Ethereum (ETH) does not have the same level of adoption in this country. On the other hand, the increase in investors coming from South America is something that will benefit each and every one of us.
It would appear that South Africa will be the first region in the world to accept cryptocurrencies on a national level, starting the worldwide revolution in the process.