Latinx communities continue to overcome obstacles in adopting Bitcoin

Digital assets Latinx have become increasingly ubiquitous in our daily lives lately – in the news, in popular culture, and in our personal interactions. In the first quarter of 2021, the number of daily Bitcoin (BTC) transactions reached 367,536 worldwide. Bitcoin alone now accounts for around $ 20 billion in daily online transactions. In addition, those who are familiar with digital assets and cryptocurrencies trust them completely – Binance’s Global Crypto User Index for 2021 shows 97% trust in electronic money.

On a pro rata basis, members of the Latinx community in the US have some of the highest crypto adoption rates, with roughly 31% of Hispanics owning Bitcoin and the same data suggesting that 25% of Bitcoin owners are Latin. There are many reasons for this impressive adoption rate, not the least of which is the group’s lack of access to traditional wealth. In 2016, Latinx families held less than one-sixth of the wealth of white families and were more likely to support family members who do not live with them. In 2020, Mexicans living in the United States sent over $ 40 billion to family members in Mexico, and many of those transfers were through cryptocurrency.

While the Latinx communities seem to be at the forefront of adopting digital assets and using them to improve their daily lives, it is important that players in the digital crypto and asset industry work to include disadvantaged groups in their plans for the future Integrate into these communities to continue the upward trend in adoption and ensure that everyone is aware of the many benefits digital assets can offer.

Latin Americans adopting children

It is only a matter of time before digital assets reach their full popularity in Latin America. For example, consider El Salvador’s decision to become the first country in the world to make Bitcoin legal tender. El Salvador citizens can now get $ 30 worth of Bitcoin by downloading and registering the government’s cryptocurrency app, Chivo. Taxes can be paid in Bitcoin and prices are displayed in BTC or US dollars. A major factor in the law is to help people in other parts of the world who are sending money back to El Salvador, as these payments often come with high transaction and commission fees when made in fiat currency.

Related: What is really behind El Salvador’s “Bitcoin Law”? Experts answer

Argentina follows El Salvador at the top, with members of the Argentine National Assembly recently tabled a bill that would allow Argentines to accept their wages in Bitcoin. Cuba, Paraguay and Uruguay have all announced that they will soon officially recognize and regulate cryptocurrencies in their countries. Heads of state and government in Argentina, Brazil, Panama and beyond have supported El Salvador’s actions on social media.

Helping migrants send money to their family and friends in their country of origin is just one example of how digital assets can empower people. Bill payment services through blockchain technology can also be life changing for people in marginalized communities. Blockchain payments are safer, faster and often cheaper than traditional methods – and do not require access to traditional banking and payment channels. This is especially important as many people in disadvantaged communities do not have access to bank accounts. While they make up only 32% of the US population, black and Latin American households make up 64% of those without a bank account and 47% of those with poor banking status.

Overcoming barriers to entry

People from disadvantaged communities have shown their persistence and determination in how they innovated and used these new technologies to their advantage to overcome the constraints that traditional finance has placed on them. These groups are among the most famous with cryptocurrencies in the United States and are quick to adopt and use the technology.

Now it is the role of the crypto industry, governments and organizations to reach and serve marginalized communities, integrate into their communities and show them how to get even more out of it and change their daily lives for the better. When companies and regulators can learn more about the cultures and traditions of these communities, they can understand their needs and meet those needs in a win-win manner.

Two main barriers to digital asset adoption remain: ignorance and security concerns. So education is key to further digital asset adoption – people need to understand the value of digital assets and how digital assets can serve them and their communities. Since digital assets are still a relatively new concept, fear and ignorance are natural. It is difficult to understand how these new technologies can replace aging structures like traditional banks and how this new technology can serve them efficiently, safely, securely and safely.

Related: The mass adoption of blockchain technology and education is key

Digital assets using blockchain technology, widely recognized as one of the safest options for transactions and payments; However, this may not be obvious at first to those unfamiliar with the concept and concerned about the safety of their funds and payments. With the right understanding and educational initiatives, we can help crypto users select secure, regulated, and licensed digital asset providers so they can transact with confidence.

The widespread adoption of cryptocurrencies is still in its infancy and many obstacles remain. The government’s close relationship with traditional banking in many countries should make digital assets skeptical. Taking a top-down approach, it is imperative for governments and industry leaders to support this innovative, extremely useful technology. By creating a safe, regulated environment for cryptocurrencies and enabling healthy lectures and education on the subject, we can empower and transform the lives of citizens.