Due to the unique traits it presents, Latin America has been a thriving region for cryptocurrency, as the technology aims to complement or even substitute traditional finance components that cannot be used in certain countries in the area.
Marked by the vast differences between its countries, grouping Brazil โ one of the first economies of the world โ and countries like Venezuela and Argentina, which face enormous economic challenges, Latam is home to two crypto use cases. The first presents its speculative side, while the second, grassroots-focused use case seeks to substitute payment channels in sanctioned countries, serving as a hedge against devaluation and inflation.
Bitcoin mining is also an emergent activity on the continent, with companies seeking to take advantage of the cheap power tariffs and ideal climates that countries like Paraguay and Argentina offer to incoming mining companies.
The region is home to El Salvador, the first country to adopt bitcoin as legal tender, which is now facing various challenges stemming from the emergence of this currency in a dollar-dominated economy.
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