Ripple is a cryptocurrency and payments platform. It has published an article that examines the potential Latam presents for crypto businesses as the country’s regulated payment rails open to crypto. The region is not without its challenges, including the dominance and economic nature of central banks. However, it has a lot to offer for those who partner with banks to spread crypto.
Ripple Spots Opportunity in Latam
Ripple is a cryptocurrency, banking and remittances company. Ripple believes Latam may be an area of great opportunity for future crypto businesses. Ripple recently examined the payments in Latam and how they could be integrated with crypto services. These openings could be found by crypto-related companies if banks integrate cryptocurrency services into their systems, according to Ripple.
The company said this about the idea:
Traditional banks, governments and fintechs have a great opportunity to expand adoption of crypto-forward technology in order to solve the fragmented and underbanked market.
It is possible for crypto companies to collaborate with fintech and banks to play an active part in the transacting and making payments across these main rails.
Obstacles in the Way of the Process
The integration process will likely have its ups and downs. Banks in the region manage traditional payment rails. In some large countries, banking inclusion is high. For example, 88% of Brazil’s population and 82% respectively, have bank accounts. These opportunities are available in the form services that charge lower fees than traditional banks, which can encourage more people to switch from digital payments and cash to other forms of payment.
It will have a significant impact on the future of crypto-related businesses in the region by including them in various regulatory discussions, as stated in the article. Ripple thinks that the process will prove to be beneficial, noting that:
Smart and progressive regulation will beget further successful regulation — leading to increased innovation and progress around crypto across Latin America.
There is an emerging regulatory movement on the continent. El Salvador, Brazil, and El Salvador are the leaders in cryptocurrency regulation. Brazilian lawmakers have pledged to bring a uniform regulation of cryptocurrency assets to Congress, which will be approved by Congress in the next months. El Salvador made bitcoin legal last year after it passed its Bitcoin Law.
The presented scenario includes a gradual separation from U.S. and dollar markets which are currently influencing the region. Ripple agreed with this 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.
What do you think about Ripple’s opinion regarding the future of crypto in Latam? Leave a comment below.
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