Recent developments in digital assets have made them more prominent in our daily lives, in news, pop culture and in personal interactions. The number of daily global Bitcoin (BTC), transactions reached 367,536 in the first quarter 2021. Bitcoin now accounts for $20 billion in daily online transactions. This is not all. Those who are familiar and comfortable with digital assets or cryptocurrencies have implicit trust in them. Binance’s “Global Crypto User Index”, 2021, shows 97% confidence.
The United States has the highest rate of crypto adoption. About 31% of Hispanic Americans own Bitcoin, and 25% of Bitcoin owners are Latinx. This impressive adoption rate can be explained by many factors, not least the fact that Latinx people have less traditional wealth. Latinx families had less than half the wealth as white families in 2016 and were more likely to support their family members who didn’t live with them. Over $40 billion was sent by Mexicans to their Mexican relatives in the United States in 2020. Many of these transactions were made via cryptocurrency.
Latinx communities are at the forefront in adopting digital assets and using them in improving their lives. However, it is crucial that people in the cryptocurrency and the digital asset industries work to include marginalized groups in future plans. To continue this upward trend of adoption and ensure everyone is aware of all the benefits digital assets have, it is essential that they integrate with and embrace these communities.
Latin American adoption
It’s only a matter time before digital assets become fully mainstream in Latin America. Look at El Salvador’s recent decision to make Bitcoin legal tender. When citizens in El Salvador download the Chivo cryptocurrency app and register, they can receive $30 worth of Bitcoin. You can pay taxes in Bitcoin and prices in USD or BTC. The law’s main purpose is to assist people from other countries who send remittances to El Salvador. These payments are subject to high transaction and commission fees if done in fiat currency.
Related: What’s the real reason behind El Salvador’s “Bitcoin Law”? Experts have the answer
Argentina is following El Salvador’s example, with members from Argentina’s National Congress submitting a bill recently that will allow Argentine citizens to accept their Bitcoin salaries. Paraguay, Cuba, Uruguay and others have indicated that they will recognize cryptocurrency and regulate it in their respective countries. El Salvador’s social media action has been supported by leaders in Argentina, Brazil and Panama.
Digital assets can be used to empower people. One example is helping migrants send remittances home to their families and friends back in their country of origin. People living in marginalized communities could benefit from bill payment services using blockchain technology. Blockchain payments are faster, more secure, and more cost-effective than traditional payment methods. They also don’t require access to traditional banking or payment channels. This is especially important because many people in marginalized communities don’t have access to bank accounts. Although they only make up 32% of the U.S. populace, Black and Latinx households account for 64% and 47% respectively of the unbanked.
Overcoming entry barriers
People from marginalized communities have demonstrated their determination and tenacity in using new technologies to their advantage and overcoming financial limitations. These groups are the most familiar with crypto and are quick adopters and users of the technology.
The crypto industry, governments, and other organizations have the responsibility to reach out and serve marginalized communities, as well as to integrate with them and show them how they can benefit from the cryptocurrency industry. Enterprises and regulators can gain insight into the culture and traditions of these communities and adapt to their needs in a mutually-beneficial way.
There are two main obstacles to digital asset adoption: lack of understanding and security concerns. Education is crucial to digital asset adoption. People need to be educated about the benefits of digital assets as well as how they can benefit them and their communities. Fear and confusion are normal because digital assets are still relatively new. It can be difficult to understand how these new technologies could replace traditional structures such as banks and how this technology can help them more efficiently, safely, and securely.
Related: Education is key to mass adoption of blockchain technology
Blockchain technology is used to create digital assets. This is generally considered one of the most secure methods for payments and transactions. However, it may not be obvious to people who aren’t familiar with the concept or worried about their money security. We can assist adopters of cryptocurrency to find licensed, secure and regulated digital asset providers so they can transact with confidence.
Although widespread adoption of crypto is still in its infancy, there are many hurdles. Skepticism about digital assets will be driven by strong government ties to traditional banks in many countries. It is crucial that government and industry leaders support this revolutionary, highly beneficial technology. We can empower citizens and make their lives better by creating a safe and controlled environment for crypto, as well as facilitating healthy discussion and education about the topic.
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.
Rodrigo Bezanilla, Coinsource’s Latin American business strategist is Rodrigo Bezanilla. Rodrigo is a professional with extensive experience in the management of cross-border relationships between Mexico and the United States. He has over 25 years’ experience as an investment and financial advisor. Rodrigo is the managing partner of Tejas Opportunity, a cross-border equity firm that focuses on Texas social impact investments. He lends his expertise in building opportunities for the Latin American community by forming strategic business alliances or private equity activities.
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.