The blockchain analytics company Chainalysis has published a report highlighting the importance of cryptocurrencies in Latin America to escape inflation.
The blockchain analytics firm Chainalysis has published a report highlighting, among other things, the importance of cryptocurrencies in Latin America to escape inflation
The analysis, called "Latin America mitigates economic turbulence with cryptocurrencies" analyzes the trends of cryptocurrencies in Latin America between July 2019 and June 2020, and shows, for example, that problems of access to the traditional banking system and the need for remittances are driving patterns of use of cryptocurrencies
But the context in Latin America, and especially in countries such as Venezuela or Argentina, suggests cryptocurrencies as a safe store of value, in the midst of tumultuous markets.
“It is not only businesses in Latin America that have problems with banks. Many individuals are also unable to obtain bank accounts, which is another factor driving the adoption of cryptocurrencies, ”they noted in the report.
Unequal income, difficulty in obtaining a bank account, the need to store value, the emergence of stablecoins, such as DAI and USDC, all this comes together in a scenario where Latin Americans seek to secure their savings and escape inflation ...