Crypto education can bring financial empowerment to Latin Americans

It was estimated that around 15% of the global supply of Bitcoin (BTC), was in Latin America in October 2021. A recent report by Crypto Literacy states that 99% of respondents from Brazil and Mexico failed to pass a basic assessment in crypto literacy. Although crypto adoption is on the rise in the region, many people don’t have a basic knowledge of the technology or its use cases.

This lack of crypto literacy becomes a serious concern when it is considered in the context Latin America’s developing markets, where blockchain technology use cases hold great significance.

Latin American residents who are not cryptoliterate risk being denied stablecoins, which can provide protection against Latin America’s rising inflation. Decentralized apps (DApps), which allow unbanked populations to access financial services via their mobile devices, are also available. For countries where remittances play a significant part of the economy, cryptocurrency offers a quicker and more affordable way to send funds across borders.

How can we help Latin America’s least-served population access this life-changing technology, Education.

Related: Education is key to mass adoption of blockchain technology

Education is key to mainstream adoption

Education can address three main obstacles to mainstream crypto adoption: trust, safety, and financial literacy.

Financial literacy

Lack of financial literacy is not only a barrier for crypto adoption, but also to traditional bank adoption. Nearly 50 percent of Latin America and the Caribbean’s population are not banked, meaning they do not have access to financial services or a bank account. Many people cite a lack of trust in institutions as the reason they are not banking. There is often little trust and little understanding.

Related: Education is still lacking, although decentralized finance might be the future.

Trust

I can tell you that it is not uncommon in Mexico for parents to recommend that their children convert their savings into dollars in the USA and store it in safes rather than trusting their earnings with a financial institution. We can encourage mainstream adoption by fostering financial literacy that is both broad and focused on blockchain-related concepts.

Safety

Education is not just about trusting financial institutions. Trusting yourself is also important. If people don’t know how to interact with institutions and tools, they are more likely make poor financial decisions. They know this. Education can be a form of safety net. It teaches individuals what regulations exist to protect them and helps them understand how financial services fit into those regulatory frameworks.

Teach only where it is most important

The potential for crypto to transform the world is immense and those who are most familiar with it will have a significant advantage. It is important that the crypto world targets the right audiences to maintain the existing inequalities. The recipients of blockchain education should not forget about remote and underserved communities as well as those who have less access to traditional education.

We must provide mobile-friendly education opportunities for remote communities so that people can access educational materials via their smartphones without having to travel far to reach the nearest city.

Multimedia educational materials are an option for those with limited education. They can be used to bypass the need for literacy and do not assume high-level knowledge.

Mentorship programs for women and role models are crucial to create welcoming spaces that encourage women to enter crypto.

Related: The education gap continues to persist despite women’s growing interest in crypto

To reach global audiences, we need to create resources in Latin American languages (Spanish and Portuguese) in order to reach as many people as possible.

We must all avoid financial barriers to education. Instead, trust in the long-term benefits of expanding user bases with free and accessible education.

Blockchain technology and cryptocurrency were created to challenge the traditional financial system. They can dramatically improve financial inclusion in Latin America and freedom. It’s not surprising that crypto adoption has already increased. However, mass adoption of this new technology poses a risk to the most vulnerable people. This can be solved by education. Education can build trust in the rapidly-advancing technology, and instill knowledge that allows individuals to safely use these tools. Education can end financial exclusion.

This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their research before making any decision.
These views, thoughts, and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.
Abraham Cobos Ramirez, crypto strategy manager at Bitso is Latin America’s cryptocurrency platform with over four million users. Abraham is a blockchain specialist and a business specialist who has extensive experience in the development, implementation and maintenance of technology solutions. Abraham worked as part of Bitso’s integration consulting team, where he developed and implemented solutions for complex problems in Mexico, Costa Rica and Panama.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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