Ripple, the cryptocurrency and payments company, has published an article examining the opportunities Latam offers crypto companies as its regulated payment rails come to crypto. While the region faces some obstacles due to its economic characteristics and the dominance of centralized banks, the organization believes that there is a lucrative opening for companies that partner with these banks to bring crypto to the masses. .
Ripple Spots Opportunities in Latam
Ripple, the banking, money transfer and cryptocurrency payments company, believes that Latam could be a hotspot of opportunity for crypto companies in the future. In a recent article, Ripple examines the current payments and possible integration that crypto services can find in the region. According to the company, crypto companies could find these openings when banks start integrating cryptocurrency services into their platforms.
About this idea, the company said:
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 underscores the idea that crypto companies are collaborating with banks and fintech companies to play an active role among the main rails for transacting and making payments in these countries.
Barriers to the process
However, this integration process would probably not be smooth. Traditional payment rails are run by banks in the region, and banking inclusion is very high in some of the larger countries, with Brazil and Chile having 88% and 82% of their population banked, respectively. The opportunities come in the form of offering services with lower fees than traditional institutions, which could entice people to switch from cash and other payment methods to digital transactions.
The inclusion of crypto companies in the various ongoing debates regarding regulation will also be very important for the future of crypto in the region, according to the article. Ripple believes this process will be positive, stating that:
Smart and progressive regulation will breed more effective regulation, leading to increased innovation and progress around crypto in Latin America.
In that sense, there is a regulatory awakening on the continent, with countries like Brazil and El Salvador leading the pack in crypto regulation. Brazilian lawmakers have pledged to introduce unified regulations for cryptocurrency assets before Congress approves them in the coming months, and El Salvador declared bitcoin legal tender last year with the approval. of its Bitcoin law.
This presented scenario also includes a gradual detachment from the dollar and US markets, which currently have significant influence in the region. On this, Ripple concluded:
The ability to insulate from the financial fluctuations of other regions underscores one of the key reasons why achieving interoperability across Latin America and avoiding the risk reduction trend in the United States are so critical to LATAM savings.
What do you think of Ripple’s opinion regarding the future of crypto in Latam? Tell us in the comments section below.
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