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Understanding Latin America’s Rising Interest in Bitcoin Adoption

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Latin American countries have been enacting or even signaling their interest in bitcoin over the last few weeks.

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Both El Salvador and Paraguay have signaled their pro-bitcoin intentions. The former has not even so much signaled them as put them into practice.

However, this is not the end of the story. Other Latin American countries have similar intentions including Brazil, Panama, Mexico, and Argentina.

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El Salvador adopts bitcoin

El Salvador’s president, Nayib Bukele, during the Bitcoin 2021 conference, did something unexpected. In a pre-recorded video, he announced that he would present a bill to Congress. His goal was to formally adopt Bitcoin as legal tender.

Shortly afterward, he added that he intended to make his country a bitcoiners’ paradise.

According to his bill, BTC would not be subject to capital gains tax. Moreover, those investing their coins in El Salvador would be entitled to immediate permanent residency.

The plan was quickly implemented. Just a few days later, El Salvador became the first country to officially accept BTC as legal tender.

Other countries in the region decided to follow its example. Among them were some equally poor economies of Brazil, Panama, Mexico, and Argentina.

Thus, let us consider why Latin American countries have a completely different stance to that of, for example, the Chinese Government or representatives of Dutch authorities.

Printing the dollar does not help poorer countries

One of the reasons for El Salvador’s pro-bitcoin stance is the United States Federal Reserve. The Fed has been heating up the printers over the past year. According to Forbes:

“The Federal Reserve has dramatically expanded the supply of circulating U.S. dollars, as measured by the M2 money stock, from $15.35 trillion in February 2020 to $20.26 trillion in May 2021. That’s an increase of 32 percent, unprecedented in modern peacetime U.S. history.”

Printing money has helped mitigate the economic impact, unfortunately only in the U.S. Countries like El Salvador have begun to lose purchasing power due to U.S. inflation.

The Fed has so far shown no signs of easing its policy. On the contrary, it keeps announcing newer and larger stimulus measures.

Bukele, through formal approval, hopes to stabilize the Salvadoran economy. In his opinion, in such circumstances, it becomes necessary to allow a private digital currency to circulate, independent of central bank control.

However, the Salvadoran president’s main motive is to improve the economic well-being and financial inclusion in a country where 70% of the people have no access to banking or borrowing facilities.

Around 20% of El Salvador’s GDP comes from money sent home by migrants. This causes additional difficulties with international transfer fees and inefficiencies in the system. It can sometimes take several days to send such funds.

Latin America has the most cryptocurrency users

Statista released a study back in June 2019 that showed the number of global cryptocurrency users.

Interestingly, some of the most “developed” countries, such as the U.S., the United Kingdom, Australia, and France, were at the bottom of the list.

It is Latin America with the most cryptocurrency users in the world. The top ten crypto countries included Brazil, Colombia, Argentina, Mexico, and Chile.

Source: Statista

Another survey conducted by Morning Consult found that as many as 21% of Latinos know “a lot about bitcoin.” Interestingly, this survey was conducted back in 2014, which is considered early for bitcoin interest and adoption.

Considering all this, it begs the question: Why does Latin America have the most users, and why are countries in the region pushing for widespread bitcoin adoption?

Why do LATAM countries want cryptocurrency adoption?

Economic and financial instability

People in Latin America tend to use cryptocurrencies to protect their wealth.

Many countries in this region of the world are experiencing economic problems. Their inflation rates are skyrocketing at a parabolic rate, making citizens’ wealth worth less and less.

Rising inflation and a lack of faith in the government is causing these countries to turn to digital assets. Storing money on a blockchain helps people keep their money’s value.

Regardless of how a country’s economy is going to perform, storing value in something not established within a country’s borders allows people to feel much more secure.

Despite the inherent risks and volatility of cryptocurrencies, it’s still a better option than holding on to devalued national currencies that are sometimes more profitable to burn in the furnace than use daily.

An unbanked population

According to the World Bank, at least 50% of the Latin American population does not have access to banking. This leaves many people with no way to protect their money, apart from keeping it under the mattress.

Likewise, only 113 million people have access to payment cards. On the other hand, Statista reports that 387.2 million people are connected to the internet.

So it seems that people have more access to the internet than to a bank account. This is the reason why people are keen on cryptocurrencies. It is simply an easier option for them.

Bitcoin remittances

Due to the difficult economic conditions and authoritarian regimes in many countries, people are starting to emigrate.

They leave their families and go work in other countries with a stronger currency. This creates another problem. They have to send the money they earn to support their relatives.

Remittance services are usually very expensive and subject to high commissions. What’s more, if the system is inefficient, it can even take days to send money.

This is where cryptocurrencies come in. Digital assets allow for fast and secure transactions.

This is why many people in Latin American send funds to family or friends in other countries via bitcoin, other cryptos, or simply through blockchain technology.

An example of this is the relationship between Venezuela and Colombia. Due to Venezuela’s economic difficulties and authoritarian regime, hundreds of thousands of Venezuelans have fled to neighboring Colombia.

However, some are still left behind in Venezuela. Those who manage to escape often send money to their families using cryptocurrencies.

Special companies have even been created to facilitate this process. For example, the Columbian start-up Valiu has created a blockchain-powered remittance system in which it takes less than an hour to send money to Venezuela.

A younger population

According to Ana González Barrera of the Pew Research Center, Latin Americans use the most cryptocurrencies because the population there is mainly made up of young people.

“Hispanics tend to have a higher share of technology use, especially mobile technology.  This is because Hispanics are younger than other groups. That is why they are more likely to use technology.”

Bitcoin discussion versus adoption

The rising interest in cryptocurrencies by governments across Latin America should not be ignored. However, so far only El Salvador and Paraguay have taken the steps to enact legislation.

Whether the rest will follow suit or continue to face resistance and roadblocks to move crypto to legal tender is still to be seen.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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PhD and an assistant professor at an international university in Lublin, Poland. Spent 10 years studying philosophy of nature and sport science. An author of 4 books and two dozens of scientific articles. Now, he is using his mind for the benefits of the cryptocommunity. Technical analysis enthusiast, Bitcoin warrior, and a strong supporter of the idea of decentralization. Duc in altum!

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Source: https://beincrypto.com/understanding-latin-americas-rising-interest-in-bitcoin-adoption/

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Velas Launches $5 Million Funding Program

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Press Release: Velas is proud to announce the launch of a $5 million funding program to support the growth of the Velas ecosystem and expand our reach in the new Web 3.0 epoch

3rd August, 2021, Zug, Switzerland  – Today Velas are announcing the launch of a major funding program for projects to build upon the Velas Blockchain, driving innovation to the fastest blockchain on the planet — to the tune of $5 million total.

Velas are inviting projects and developers to join their ecosystem of user-friendly, transparent and privacy-respecting products built on top of the Velas blockchain. Just port code from Ethereum, or develop on their native chain, to deploy applications within minutes.

For full technical details on the Velas Funding Program, click HERE.

Investments – What Can Participants Submit?

Investment sizes can be up to $100,000 per project. The general Grant Program is designed to fund projects covering a wide range of topics, including, but not limited to:

  • DeFi-related and DEX-related products
  • NFT-related solutions
  • Games and gaming – Including Educational, AI/VR/AR, Crypto Gamification, Strategies, Collectibles, Card Games, etc
  • dApps that unite the Velas blockchain with traditional sectors — Banking, Healthcare, etc.
  • Adoption of dApps that aid the adoption of cryptocurrencies and blockchain.

Velas will also actively encourage developers to create solutions that increase decentralization and transparency within the Velas Ecosystem. All projects will be tracked on GitHub – Teams can apply for grants more than once, but they need to successfully complete their previously allocated project before receiving additional funds.

Investment Criteria

Interested in applying for the grant? Check out the investment criteria below:

  • Goal(s) and scope of the project, plus outline of how the fund will be used
  • Business plan/whitepaper
  • Technical features and value proposition
  • An executive summary and pitch deck
  • Background and experience of the team
  • Go to market strategy and user acquisition plan
  • The project, timelines, targeted deliverables at each milestone, and estimated efforts to deliver on the plans provided
  • How the project benefits the Velas ecosystem
  • Amount of funding requested and payment method
  • Project or product/ service must be built on the Velas blockchain
  • All code must be open-source, and must not rely on closed-source software for full functionality.

Velas take licensing and copyright compliance very seriously. Using others’ work without attribution or indicating that work is not original will lead to immediate termination. Users should contact Velas before submitting if they have any doubts about licensing matters. 

Benefits

  • Recruiting – Velas assists startups to hire Top Tier talent.
  • Networking – Velas assists startups with connections to investors, funds and accelerators.
  • Marketing – Velas assists startups in engaging with key exchanges, finding opinion leaders, and building viral marketing campaigns.
  • Grants – Velas provides grants for the creation of new tools and projects.
  • Technical – Velas’ experienced developers will assist with the technical side of startup projects.
  • Research – Velas assists startups with all necessary research before going to market to explore new opportunities.

Applying for the Velas Grant

To apply for the Velas Grant Program, fill out an application form. Team applications should be submitted by one representative for the project, containing up-to-date contact information, experience, and the portfolio of all team members who would be involved in working on the task. Application forms will be reviewed within 14 working days and selection results will be sent to the email provided during the application. If a proposal is successful, further communication will be required to determine specific details around timelines and payment schedules. Feedback will occur throughout the grant process.

For further information and FAQs, please check out the official Velas docs page here.

Velas are proud to welcome innovative and exciting new projects, products and services to the Velas family, and welcome a massive expansion in the usecase of the Velas Blockchain, taking advantage of the best-in-class TPS, throughput, and developer support. The Velas Funding Program helps push the Velas Blockchain to be the most attractive, powerful chain in the entire crypto sector.

For full technical details on the Velas Funding Program, click HERE.

Media Contact Details

Contact Name: Shirly Valge
Contact Email: [email protected]

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Source: https://bitcoinist.com/velas-launches-5-million-funding-program/?utm_source=rss&utm_medium=rss&utm_campaign=velas-launches-5-million-funding-program

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Square To Acquire Afterpay And Allow Bitcoin Purchases

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Jack Dorsey’s company Square has announced that it plans to acquire Australian technology company Afterpay. This was revealed in a press release that went out on August 1st. The press release showed that both companies had entered into what is known as a Scheme Implementation Deed.

Square plans to acquire all of the issued shares in Afterpay. And this will be done by a recommended court-approved Scheme of Arrangement. The total value to be paid for Afterpay came out to $29 billion. This was based on the closing price of Square’s common stock on July 30, 2021, which had a strong close.

Related Reading | Robinhood IPO’d: Here’s Why You Should Move Your Crypto Out Of Robinhood ASAP!

Following the purchase, Square plans to integrate Afterpay with its existing apps. Then the payments app will start offering Bitcoin purchases for Afterpay users. The integration will also see Afterpay’s co-founders and Square’s co-CEO working together to lead Afterpay’s businesses in the Square ecosystem.

The all-stocks deal is slated to be finalized in 2022.

The CEO of Square, Jack Dorsey, said “Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive. And Afterpay has built a trusted brand aligned with those principles.

What Is Afterpay?

Afterpay is a service that allows you to buy and pay for things over a period of time. All the while offering zero interest on these purchases.

Users can pay for items in four payments, which are stretched out over two months. Payments are made every two weeks by the users until the price for the item is complete. And do not have to worry about interest rates being added to the purchases since there is none.

Related Reading | This New Partnership Will Allow Litecoin Users To Checkout At One Of The Largest U.S. Retailers

The only additional payments that the payment service charges are late fee payments. Which are only implemented when customers do not pay the specified amount on the day it is due.

As of June 2021, Afterpay reportedly had over 16 million. The buy now, pay later giant has continued to report record sales in 2021. In the first quarter, Afterpay had reported a record $10 billion in sales.

Bitcoin Purchases And Benefits

The acquisition by Square will provide Afterpay users all of the benefits currently available to Cash App customers. Things like money transfer, stock purchases, bitcoin purchases, cash boost, and more will be available on the platform.

Bitcoin price chart from TradingView.com

Bitcoin price falls below $40,000 | Source: BTCUSD on TradingView.com

These will be in addition to the services already being offered by Afterpay to its customers. Square hopes to accelerate its strategic priorities for its Seller and Cash App ecosystems using Afterpay. Which Square referred to as “the pioneering global ‘buy now, pay later’ (BNPL) platform.”

The integration will help bring buy now, pay later (BNPL) capabilities to even the smallest merchants. While customers will be able to manage their installment payments using Cash App. Also giving Cash App customers the option to use buy now, pay (BNPL) from the app.

Featured image from Blockchain News, chart from TradingView.com

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Source: https://bitcoinist.com/square-to-acquire-afterpay-and-allow-bitcoin-purchases/?utm_source=rss&utm_medium=rss&utm_campaign=square-to-acquire-afterpay-and-allow-bitcoin-purchases

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Eden to Protect Sushi Traders from MEV on Ethereum

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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

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Source: https://cryptobriefing.com/eden-to-protect-sushi-traders-from-mev-ethereum/

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