• According to Ripple, latam is a hotbed of opportunities for cryptocurrency companies

  • Ripple, a cryptocurrency and payments business, has published an article evaluating the prospects that Latam provides to crypto entrepreneurs as its regulated payment rails enter the crypto space. While the region confronts significant challenges due to its economic characteristics and the prevalence of centralized institutions, the group feels there is a lucrative opportunity for enterprises who collaborate with these banks to deliver crypto to the public.

    Ripple Identifies Opportunities in Latin America

    Ripple, the banking payments, remittances, and cryptocurrency firm, believes that in the future, Latam might be a hotspot of potential for crypto entrepreneurs. Ripple investigates existing payments and the potential integration of crypto services in the region in a recent study. According to the business, these opportunities may arise when banks begin to integrate bitcoin services onto their systems.

    The company stated the following about this concept:

    There is a lucrative opening for traditional banks, fintechs and governments to increase adoption of crypto-forward technology to address this underbanked and fragmented market.

    This hints at the possibility of crypto companies cooperating with banks and fintech firms to play an active role in the key rails for transacting and making payments in these countries.

    Process Difficulties

    This unification process, however, would almost certainly not be without problems. Banks in the region administer traditional payment rails, and banking inclusion is quite high in several of the region’s largest countries, with Brazil and Chile having 88 percent and 82 percent of their populations banked, respectively. The potential come in the form of offering services at cheaper prices than traditional institutions, which may lead to customers shifting away from cash and other payment methods and toward digital transactions.

    According to the report, the engagement of crypto companies in the various regulatory debates would be highly crucial for the future of crypto in the region. Ripple believes this procedure will be beneficial, stating:

    Smart and progressive regulation will beget further successful regulation — leading to increased innovation and progress around crypto across Latin America.

    In this regard, the continent is experiencing a regulatory awakening, with nations such as Brazil and El Salvador leading the way in terms of crypto legislation. Brazilian legislators have promised to bring a single regulation for digital assets to the Congress in the coming months, and El Salvador made bitcoin legal tender last year with the passage of the Bitcoin Law.

    This scenario also includes a gradual withdrawal from the dollar and US markets, which now wield substantial influence in the region. Ripple came to the following conclusion:

    The possibility of insulation from other regions’ financial swings underscores a major reason why achieving interoperability across Latin America and avoiding the de-risking trend in the US is so critical for LATAM economies.

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