Latin America is home to one of the fastest-growing economies, and it could become a central hub for blockchain development. You can check websites like Bitcoin Bot if you want a dedicated account manager for your bitcoin trading venture. The platform has features like high compatibility with all devices, a massive range of trading tools and many more.
Approximately 23 percent of these developers are from Latin America, more than any other region in the world excluding Asia-Pacific. There are also high levels of interest in blockchain technology across Latin American countries, as there are 590 meetups for bitcoin and other cryptocurrencies across nine countries in the region.
How Technological Advancements Can Boost Export Drive in Latin America:
According to the World Economic Forum, Latin America has undergone a massive transformation due to the growth of information and communication technologies. As a result, the region has been named the fourth largest economy in the world, with its gross domestic product (GDP) increasing from $1.7 trillion in 2011 to $5.5 trillion.
In the report, the growth was primarily driven by the increase in its exports and increasing demand for manufactured goods due to the decrease in raw materials prices. In addition, it enabled Latin American countries to boost their manufacturing output, leading to Brazil, Argentina and Mexico.
Users of blockchain development can leverage many years of expertise in developing new solutions from scratch. The region is home to a pool of highly-skilled developers who understand every aspect of blockchain technology. Investment banking companies are also turning their attention toward Latin America due to the recent political turmoil that has engulfed some parts of Europe and Asia. The rising demand for blockchain and bitcoin developers in Latin America and a growing number of investment banks are expected to boost the region’s economy.
Latin America is using geothermal energy for bitcoin mining:
The region is ahead of the curve in using renewable energy for bitcoin mining. According to the latest research, 53 per cent of miners in Latin America have turned to geothermal power due to the low electricity costs. It is because most countries across Latin America are located near volcanoes or other sources of geothermal energy.
For example, Colombia is home to around active volcanoes. In addition, Brazil has found that people could convert a number of its unutilized mines into bitcoin mines due to their ease of access and proximity to its populated cities, which boosts sales for mining equipment suppliers.
Latin America has a substantial number of technical and financial experts in the region and is expected to see a rise in demand for blockchain developers. Latin American countries are expected to experience significant economic growth due to ongoing technological advancements.
El Salvador is the biggest hotspot of cryptocurrencies in Latin America:
El Salvador is fast becoming a central hub for cryptocurrency development. The Banco Central de Reserva Del Salvador (BCR) had no plans to introduce any other form of currency. Still, as the president of this county realized bitcoin’s potential as a reserving asset and a medium of exchange, they decided to appoint bitcoin as one of the two legal tenders of El Salvador. There are also plans to introduce new laws governing cryptocurrencies, Initial Coin Offerings (ICOs) and exchanges. The aim is to help curb money laundering activities and protect investors from future attacks by hackers or criminals.
The first ever bitcoin smart city in El Salvador:
The city will be an urban laboratory for bitcoin’s development and would act as a hub for blockchain startups. The project is expected to attract venture capital of approximately $30 million over the next few years.
Solutions for Central banks:
Central banks are also turning their attention toward blockchain technology to address their current issues of the lack of transparency and the need to minimize costs incurred through infrastructure maintenance. In addition, central banks in Latin America are embracing blockchain technology to improve global payment systems. It is vital if governments want to improve transparency and develop new solutions in areas such as identity management, cross-border payments, insurance claim processing, and regulatory compliance.
The financial services industry is also embracing blockchain as a new business. Banks across Latin America are developing new solutions using blockchain to streamline their infrastructure by reducing the costs they incur while minimizing their use of paper and dealing with the risk of hacking.
The goal is to provide better transparency and efficiency in the system, leading to improved productivity and profits for the Central Banks and financial institutions. In addition, Latin American countries are cutting expenses to improve their competitiveness. However, it has forced governments across the region to look for alternatives for cutting expenses, such as money printing or printing more notes or coins, which can negatively impact their monetary policies.