Bitcoin development in Latin America.
Is the Latin American economic outlook for 2016. As the largest economy in some of the region’s political instability, as well as oil and other commodity prices generally fall, companies and consumers are very low, especially in Venezuela, also appeared in the collapse of the economy. China stock market slump, serious damage to its economy, and China or the region several countries top trade partner.
Many Latin American countries are in favor of bitcoin as a solution, but the recent crisis is likely to accelerate the popularization of bitcoin.
Last year, the adoption of digital currency broke the record in Latin america. According to the payment processing platform BitPay report, commercial trading in the region, the emergence of a 510% increase in mid 2015, but the most significant increase occurred at the end of last year. Latin American commercial transactions a staggering 1747% growth in the 2015 year. Other key data bitcoin ecosystem in Brazil shows that the bitcoin exchange trading surged by 322% and the number of the use of bitcoin wallet rose 461.4%. Trading in Mexico stock exchange in 2015 rose 600%.
In Latin America, bitcoin understand most of the country is Argentina. Although Argentina has the largest number of per capita bitcoin enthusiasts, but this may be starting to change. The Brazilian and Venezuelan people have good reason to adopt bitcoin — more than Venezuela’s Bolivar in 400% and 2015 bitcoin holders proceeds more than 92%, more than Brazil Real Mexico and Argentina more than 65% pesos to 41% pesos (all local currency).
Inflation and payment, driven by consumers and businesses to make a choice
The Latin American economic crisis did not begin in 2016. Argentina, Venezuela and Brazil appeared serious economic problems at the end of 2015, including the great inflation rate — Venezuela is 275% (63% in 2014), Argentina is about 30% (36.4% in 2014) and Brazil 10.4% (2014 6.3%).
The problem in a few years ago began, administration will continue to affect the economy. The International Monetary Fund (IMF) forecast Venezuela in 2016 years the inflation rate will be 720%. According to the report of the International Monetary Fund, Brazil’s economy has been in recession since 1930-1931, the longest. Argentina’s finance minister is expected to Argentina’s inflation rate is at least 25%.
Therefore, Latin America as the 2016 bitcoin opportunity and compelling.
With the deepening crisis in Latin America, some governments are tightening capital controls. The Brazil government has announced a new tax on national expenditure (including remittances, travel expenses and other services), the tax will increase the cost of 25% (up to 33%). Businesses and consumers in multinational and local pay there will be other major problems: the settlement will need a few weeks and the cost of more than 10%.
Latin America’s seven bitcoin applications
Bitcoin has been shown to be the solution to many inflation and subsequent capital control problems caused by the. Workers and businessmen have turned to bitcoin as a depreciation of the local currency hedge, at the same time, technology began to find some practical applications as payment.
1. as a common currency, bitcoin has allowed consumers to go shopping and international remittance. From apple to WAL-MART, these companies may not accept payment from the local Latin America, but can use bitcoin continues to achieve online shopping business in the region.
2. bitcoin can help Latin American tourism to weather the current economic crisis. Due to the bitcoin that anyone can access the Internet using, it can reduce the exchange cost of tourists and businessmen. Because from the Latin American tourists often don’t take credit cards, bitcoin may be to attract more consumers outside of the popular tourist attractions in the area.
3．拉丁美洲公司给国际工人发送工资支付可以变得比电汇更加快捷、更加简便且没有成本和延迟。 Exxon Mobil in Argentina employs more than 1500 people, so it can bitcoin and other international oil companies to provide a method for easily remittances to Latin American countries in favour of.
4. online markets such as OPSkins have been through the use of bitcoin to send the payment to the international manufacturers and saw great success. Similar to eBay (2014 to enter the area) and Amazon sales platform may find bitcoin would be the best solution for Latin American buyers and sellers to pay.
5. because of capital controls, enterprises to Latin America outside suppliers and business office remittance difficult. Like McDonald’s and KFC franchise companies may find in the ongoing economic crisis, bitcoin is an ideal way to pay franchise fees and other costs of supply.
6. although Latin American importers can pay on delivery, but longer delivery time will risk their exposure to fluctuations in the value of money. In Argentina there are subsidiaries of multinational companies can use bitcoin significantly reduce these costs.
7. although many Latin American people do not like Belize’s credit card, debit card and cash services to provide advanced electronic wallet for consumers, these can be accepted and major credit card businesses use. Bitcoin provides a perfect bank transfer cannot account for these consumers affordable way. Because bitcoin recharge payment from anywhere in the world to send, also can become the Latin American consumers from outside the region to receive immediate practical remittance.
Latin America using bitcoin source: Mobile reform
Although this may seem like an unlikely success, but bitcoin is in rapid growth in Latin America by Internet is a precedent. Although compared to developed countries, Latin American Web users still accounts for a small proportion, the area of electronic commerce has climbed to nearly $50 billion (an increase of about 24% compared with the same period last year). In the area of social media users in the Web browser users accounted for almost quadrupled, shows that mobile e-commerce and social network is gradually becoming public is more important.
Although the use of bitcoin in Latin America is growing rapidly, but still faces some obstacles.
Since 2014, Facebook, Twitter and WhatsApp have become the main network from Latin American growth benefit. Latin American users accounted for WhatsApp users and 38%, accounting for Facebook of the global user group 20%. Argentina and Brazil is better than anyone in the world to spend more time on social media group.
With more and more of the Latin American people are accustomed to free and global network connection technology, such as social media supply, bitcoin will continue to be a building for the old world of digital payment systems are attractive alternatives.
Governments began to explore the bitcoin
Argentina’s new president Mauricio Kerrey’s election? Ma on behalf of the political transition in Argentina since the ruling Kirchner family for 12 years. The Macri administration has shown signs of hope by bitcoin. Because of his social media presence, Macri in Argentina called the “Facebook president”, and he talked about himself and BitPay investor Sir RichardBranson’s meeting is to use its Facebook personal identity, the billionaire claimed bitcoin is one of the most interesting activities.
Before President Macri took office as the mayor of Buenos Aires, during his tenure, the Buenos Aires municipal government in 2015 July in the city organized the first bitcoin forum. The city is still in the bank announced that Buenos Aires welcomes with magazine bitcoin action, the article pointed out that “because of our financial history and because of our rapid adoption of Argentina Bissau alternatives, we have played an important role in the popularization of bitcoin.”
Argentina bitcoin rumors have not been ignored by local politicians. The country’s youngest mayor MartinYeza rumors will include bitcoin execution and regulatory approval of a popular platform Uber in the period in which the agenda.
Accept bitcoin will be a big step forward towards the government target of economic freedom, the government has ended by the previous government to create a “CePO” capital controls. The Macri administration also announced to soften the import and export restrictions, as well as other important liberalization efforts.
Although it is unclear whether the government of Brazil and Venezuela will treat bitcoin in the same way, but bitcoin will become the Argentina government’s response to the economic crisis and the changes in the front and center of the.
Bitcoin will encounter obstacles by
Although the use of bitcoin in Latin America is growing rapidly, but still faces some obstacles. The electronic commerce has its influence in Latin America more than in North America and Europe and other markets. Although some Latin American people don’t trust their own money, but they also have daily trading day ready to use bitcoin or rely on it as a store of value.
Another challenge is the purchase and sale of bitcoin consumer friction. In the market there are few large bitcoin exchange or bitcoin wallet to make bitcoin become mainstream, but it is difficult to transfer the money to the Latin American exchanges outside. Although Bitso, MexBT, Volabit (in Mexico) and Meierkaduobite coins, FoxBit and Bitcointoyou (Brazil), Mexico and Brazil exchange users increased, Argentina and Venezuela exchange resources is still limited.
Latin America will be 2016 bitcoin opportunities and attractive. Driven by bitcoin will not be interested in, but the real demand, while Brazil, Venezuela, Mexico and Argentina may become promoting bitcoin become the best national mainstream.