Interest in Cryptocurrencies on the Rise in Latin America

Latin Americans turn to cryptocurrencies as national currencies collapse. Venezuela has emerged as the largest market. Dash, a privacy-focused coin, has signed up 200 merchants and recorded tens of th

By Ray Crawford·27 August 2018·2 min read

Interest in Cryptocurrencies on the Rise in Latin America

Key Points

Latin Americans turn to cryptocurrencies as national currencies collapse.
Venezuela has emerged as the largest market.
Dash, a privacy-focused coin, has signed up 200 merchants and recorded tens of th

Ryan Taylor, CEO of Dash Core Group, told Business Insider the numbers exceeded expectations. "Earlier this year, Venezuela became our number two market even ahead of China and Russia, which are of course huge into cryptocurrency right now," he said.

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Subway and Calvin Klein now accept Dash in Venezuela. For merchants, the appeal is evident. "Effectively, even if I accept a credit card, three days later when the funds hit my account, it's worth significantly less in Venezuela than when the authorization went through," Taylor explained. "This is a problem that cryptocurrency can solve. Dash's instant transactions can solve it and the relative stability of our cryptocurrency is better than their fiat currency."

Ripio, a blockchain startup, surveyed 890 customers in Argentina. One-quarter of them believe blockchain will displace traditional finance within five years. Respondents pointed to financial inclusion and expanded access to banking services as major reasons.

Kripto Mobile Corporation and Dash announced a partnership last week to distribute the cryptocurrency through phones costing under $100 across Latin America. Each device comes with Dash wallet software pre-installed, an integrated exchange service, and applications like Bitrefill, which allows users to purchase mobile credits and gift cards with cryptocurrency.

Venezuela's economic crisis surpasses anything else in the region. The UN estimates 2.3 million residents have fled the country, with 1.3 million suffering from malnutrition. Other countries grapple with inflation too. Turkey, Ukraine, and Argentina all face rates between 20 and 30 percent annually. Taylor said Dash will establish a foothold in Venezuela before expanding elsewhere. "Venezuela is unique, it's the only country in the world with what can be called hyperinflation. But we're seeing this with Turkey right now. We're going to try and be successful first in Venezuela before branching out to try this in other countries."

President Nicolas Maduro devalued the bolivar by 95 percent and pegged it to the Petro, a government-backed cryptocurrency, to stabilize the economy. The move failed to halt the crisis. Lianna Brinded, head of finance at Yahoo Finance, dismissed the effort. "The Petro cryptocurrency isn't working. It's made thing worse. It's a smoke and mirrors operation. They are trying to cure their economic ills but this is not the way to go. All the Petro is doing is making a bad situation absolutely horrific."

MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.

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