By Hannah perez
2020 was a difficult but growing year for the cryptocurrency ecosystem in Latin America. Know the most outstanding news of the year.
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Although news of the COVID-19 pandemic captured media attention for much of 2020, no one can deny that it was an important year for the crypto ecosystem around the world.
After the pandemic began to wreak havoc on the global economy, many paid more attention to digital currencies as safe haven alternatives. As a result, Bitcoin and the major cryptocurrencies experienced a year of high adoption globally, including among Latin American countries.
Closing the year with a surprising rise in prices, the evolution in the cryptocurrency space within Latin America did not stop this 2020. From the appearance of new exchanges to the progress in legal matters, this article by Daily bitcoin collects the most outstanding events and news of the year for the crypto ecosystem of the Latin American region.
1. Growth in the adoption of cryptocurrencies
At a global level, the economic difficulty caused by the coronavirus pandemic served as a setting for the search for alternatives to hedge against inflation, resulting in significant growth in the adoption of digital currencies. This situation was not very different for Latin American countries, especially for those whose economies had already been experiencing havoc.
Although for nations like Venezuela and Argentina, Bitcoin It already represented a financial alternative in the face of the devaluation of the local currency and exchange restrictions, this year the local crypto adoption took a new flight as a result of the covid. In the case of both countries, the exchange volumes on the platform LocalBitcoins recorded all-time highs.
While in Argentina a trend of increasing adopting stablecoins pegged to the US dollar, Venezuela experienced a growth in the number of businesses that accept cryptocurrencies among their forms of payment.
These movements were accompanied by an increase in the number of registered users within local crypto exchanges, such as Paxful and Binance P2P. The trends were not unique to these two nations. Other countries in the region, such as Colombia, Chile, Mexico and Peru, also experienced similar movements.
2. Massive presence of events
With the spread of the pandemic, strict social distancing and quarantine measures were applied, causing the cancellation of many events and conferences related to crypto and Blockchain. However, physical distance was not an impediment to the formation of new spaces, events and communities that, from the virtual modality, began to generate discussions about technology.
In Latin America, many of the annual cryptocurrency conferences went digital: LaBitConf, Blockchain Summit Latam and Cripto Latin Fest, were some of the most recognized that applied the virtual modality. Likewise, there were many other talks, webinars, workshops and other virtual spaces for the discussion of current issues at the regional level around Bitcoin and its underlying technology.
But perhaps the most significant of this trend seen during 2020 was the massive attendance that many of these digital events had. Adding the participation of important representatives of technology at an international level, these spaces also allowed the strengthening of the community of crypto enthusiasts from all over Latin America.
3. Emergence of new exchanges and crypto initiatives
Another very important aspect of 2020 was the arrival of new digital asset exchange platforms in the region. In March of this year, the main exchange of cryptocurrencies by volume globally, Binance, announced the launch of Binance P2P for five different Latin American countries – and their respective currencies.
While in Argentina the prohibition of transfers abroad and the purchase of foreign currency were factors that accelerated the adoption of cryptocurrencies by companies at the local level; In countries like Cuba, the US sanctions were also an engine to boost the emergence of crypto trading platforms.
A similar case, although fraught with more controversy, was that of Venezuela, where the national government announced the creation of a digital currency exchange platform.
At the regional level, this emergence of new platforms was accompanied by the birth of various initiatives to promote the use of cryptocurrencies. For example, in Mexico, the exchange Tauros launched a Visa card that allows its users to earn rewards in Bitcoin.
4. Strengthening in adoption Blockchain
Despite the pandemic, this year, Latin American countries also stood out for their significant adoption of technology Blockchain. From private companies and social or environmental initiatives, to the public sector, the incorporation of systems Blockchain He continued to advance without brake.
In the energy sector, countries such as Uruguay and Chile made important developments in the adoption of technology. For example, in Uruguay, the state electric power company, UTE, announced that it will have its own renewable energy certification seal with the help of such technology.
Meanwhile, in Chile, Transelec, one of the main electricity transmission companies in Chile, this year launched a platform Blockchain for traceability and certification of renewable energy. The South American country also stood out in this trend within various sectors. From the Santiago Stock Exchange, to the soccer team of the University of Chile, they reported projects for the integration of said technology.
5. Regulatory progress on Bitcoin
2020 was also a year of significant progress in terms of regulatory clarity at the global level, a notable advance that was also observed among some Latin American countries.
In the case of Colombia, one of the most important countries in the region in the digital currency ecosystem, as it is one of the nations with the highest volume of commercial operations with said assets, this year was especially positive in regulatory matters. On the one hand, the Bill to regulate exchanges, while, on the other hand, the Financial Supervisionfrom Colombia announced the start of tests in its Sandbox Regulatory for the trading of crypto assets.
Other countries in the region such as Chile, Brazil, Panama and Argentina also advanced this year in the discussion of various bills that aim to clarify the regulation on the use of digital currencies. For example, in the case of Brazil, as a bill presented this year by the Social Liberal Party is being discussed, companies in the sector decided to sign a self-regulatory agreement.
In other countries such as Argentina, at least three bills have already been presented for the regulation of digital assets in the nation; Meanwhile, in Venezuela, regulatory advances focused on cryptocurrency mining with the legalization of such activity by the national government. However, not without certain conditions.
What to expect from 2021?
Without a doubt, 2021 augurs to be a promising year for the digital currency ecosystem in Latin America. With an optimistic market and a stronger local community, a start to the decade of increased adoption and innovation around digital assets and technology can be expected. Blockchain.
It is possible that the institutional adoption observed in 2020, marked by the offer of Bitcoin by companies such as Paypal, open the door for many other industry initiatives to shift to digital assets. In this sense, it is expected that payment platforms and even services for sending remittances will join this wave of adoption.
An outlook that, in the future, could be driven in turn by regulatory progress in the region; where greater regulatory clarity may eventually pave the way for banks and large financial institutions to start adopting Bitcoin and other digital assets.
Article by Hannah Estefanía Pérez / Daily bitcoin
Picture of Unsplash
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