A new report from Ripple shows that Latin Americans prefer businesses to accept cryptocurrencies rather than other types of payments. This is a trend that can be seen in some countries that have adopted virtual currencies to store money, save, and process payments.
The information, that was released by Ripple in a recent report, shows that Latin America is a region where people want to use digital currencies to make payments at different businesses.
Latin Americans Push for Bitcoin and Crypto Adoption
According to a recently released report by Ripple, Latin America and Asia are the most optimistic regions when it comes to blockchain technology and cryptocurrencies compared to other regions. Indeed, Europe is among the most conservative regions when it comes to crypto adoption.
This could be related to different issues including the lack of political and economic stability that developed countries currently offer to citizens. In some cases, people are using digital assets not only to process payments but to save money. Some of these countries are affected by high inflation rates or oppressive countries were using foreign currencies is penalized or discouraged.
The report said about Latin American countries:
“There is general consensus that crypto, like other tokenized assets, will have a significant or even massive impact in the coming five years, with LATAM being particularly bullish on this, and Europe a bit more conservative.”
The report goes on to explain that there are different use cases for virtual currencies that LATAM users are focusing on. We all know that the current narrative about digital currencies is related to using them for speculation. However, LATAM countries are focused on using them for payments and savings as well.
We are talking not only about Bitcoin (BTC), but also about stablecoins such as Tether (USDT) or DAI. These are stablecoins that have their value pegged to the U.S. dollar (USD). Despite the fact that inflation in the United States topped 9%, countries such as Venezuela or Argentina have high inflation rates and people are used to saving in dollars or pricing things in foreign currencies.
Hence, the report is a snapshot of the current cryptocurrency market situation in LATAM. It is also worth pointing out that due to capital regulations, it is very difficult for people in these countries to buy foreign currency and store value for their work. This is where stablecoins become very important for individuals and companies.
This is why 50% of Latin American respondents said that they believe that virtual currencies will have a massive impact on society. This is 15% percentage points larger than in Europe, where only 35% of the respondents consider that there will be a “massive impact” on finance.
Other regions such as the Middle East and North Africa are also interested in digital currencies but not as much as people in LATAM countries. In the future, support for virtual currencies could increase, especially now that in Europe inflation rates are hitting levels not seen in decades.