The adoption of El Salvador’s Bitcoin (BTC) has sparked a digital asset revolution in Latin America and the region could benefit even more if people could exchange cryptocurrencies, Fiat Money and the upcoming Central Bank Digital Currency (CBDC) over the same infrastructure, says Multicarentiff .
Speaking to the Quintelegraph, Uphold CEO JP Thiriot stressed that the nature of life in Latin America calls for bitcoin-based use, saying the region would benefit the most as crypto adoption continues to grow.
In addition to Venezuela and Colombia El Salvador are the two most prominent crypto recipients in the region. However, other countries are rapidly closing the gap, with El Salvador acting as a catalyst, Thiriot explained. Of Uphold’s 7 million users, 1.4 million originated in Latin America, and the region’s high adoption rate continues to attract players worldwide.
Bitcoin is initially bankless and will be accepted by those who send or receive remittances, he said. However, CBDCs will become more popular with merchants than the largest cryptocurrencies. “Many businesses can understandably choose something stable for transactions, but investment portfolios by Bitcoin will benefit much more,” he added.
“With the appropriate channels for converting between Bitcoin, US Dollar and any potential CBDC, users can use any currency they like best.”
Speaking of the CBDC, Theriot noted that each country does not need to create its own digital currency, as the existing one would be easier to adopt. He added that the main goal of Latin American countries should be an effective system where anyone in the region can simply exchange between resources.
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As Thiriot noted, Latin America has enjoyed significant growth in crypto funding in 2021. The Mexican cryptocurrency exchange Bitso has become the first crypto unicorn in the region to raise $ 250-million Series C capital in May.
Mercado Bitcoin, a Brazilian crypto exchange, has also completed a mega-funding round, securing $ 200 million in Softbank financing. “It’s fantastic, and we hope a lot more is coming,” Thiriot commented, adding:
“Banking without banking is seen as one of the main philosophical and practical pillars of cryptocurrency, which may mean, for the first time, giving people access to financial services that rival or outperform anything in the legacy system.”
This means that families dependent on remittances should not see their 10% -20% snatched by money transfer companies, continue the theoretically. “This means that literally, anyone can start building an investment portfolio. It will fundamentally change the quality of life. ”