The Latino community continues to surpass Bitcoin adoption barriers

Digital assets have recently become more and more common in our daily lives-in news, popular culture, and our personal interactions. In the first quarter of 2021, the number of bitcoins per day in the world (Bitcoin) trade beat 367,536.Now only bitcoin account Approximately 20 billion U.S. dollars of online transactions are made every day. Not only that, people who are familiar with digital assets and cryptocurrencies also trust them secretly-Binance 2021 “Global Crypto User Index” show 97% confidence in cryptocurrency.

In terms of proportions, members of the American Latino community have the highest proportion of adopting cryptocurrency, with approximately 31% of Hispanics have Bitcoin and the same data indicate that 25% of Bitcoin owners are Latino. There are many reasons behind this impressive adoption rate, the most important of which is that this group has fewer opportunities to acquire traditional wealth. In 2016, Latino families hold Less than one-sixth of the wealth of a white family and several times more likely to support family members who do not live with them. In 2020, Mexicans living in the U.S. send More than 40 billion U.S. dollars was given to family members in Mexico, many of which were transferred through cryptocurrency.

Although the Latin community seems to be at the forefront of adopting digital assets and using them to improve daily life, it is important that those in the cryptocurrency and digital asset industries strive to incorporate marginalized groups into their future plans and integrate and accept these communities, continue Take this upward trajectory and make sure that everyone understands the wide range of benefits that digital assets can provide.

Latin American adoption

It is only a matter of time before digital assets are fully popularized in Latin America.For example, see El Salvador decided to become The first country in the world to classify Bitcoin as legal tender.Salvadoran citizens You can now receive $30 worth of Bitcoin When they downloaded and registered Chivo, the government’s cryptocurrency application. Taxes can be paid in Bitcoin, and the price will be displayed in Bitcoin or U.S. dollars. One of the main thrusts of the law is to help people in other parts of the world remit money back to El Salvador, because these payments usually incur high transaction and commission fees when they are made in fiat currencies.

related: What is the real reason behind the “Bitcoin Law” in El Salvador?Expert answers

Argentina is following the leadership of El Salvador, together with the members of the Argentine National Assembly Recently submitted bill This will allow Argentines to accept Bitcoin wages. Cuba, Paraguay with Uruguay Both said that they will officially recognize and regulate their country’s cryptocurrency in the near future. The leaders of Argentina, Brazil, Panama and other countries all support El Salvador’s actions on social media.

Immigrants who help send money to people of their country of origin and friends are just one example of how digital assets can empower people. Bill payment services through blockchain technology can also change the lives of people in marginalized communities. Payments via blockchain are safer, faster, and generally more cost-effective than traditional methods-and do not require access to traditional banks and payment channels. This is especially important because many people in marginalized communities cannot use bank accounts.Although they make up only 32% of the U.S. population, black and Latino families represent 64% of people do not have a bank account, and 47% do not have a bank account.

Overcome barriers to entry

Those from marginalized communities have shown tenacity and determination in how to innovate and use these new technologies to bring them advantages and overcome the limitations of traditional finance.These groups are the most familiar Encryption technology is used in the United States, and it will be adopted and used soon.

Now, the role of the crypto industry, governments, and organizations is to reach out to marginalized communities and cater specifically to them, integrate with their communities and show them how they can further benefit and improve their daily lives. If companies and regulators can understand the culture and traditions of these communities, they can understand their needs and meet them in a mutually beneficial way.

Two major obstacles to the adoption of digital assets still exist: lack of understanding and concerns about security. For this reason, education is the key to further adoption of digital assets-people need to understand the value of digital assets and how they can serve them and their communities. Given that digital assets are still a relatively new concept, fear and lack of understanding are natural. It is difficult to understand how these new technologies replace long-standing structures such as traditional banks, and how this new technology caters to them more efficiently, securely, and reliably.

related: Mass adoption of blockchain technology is possible, education is the key

The use of blockchain technology for digital assets is generally considered to be one of the safest options for transactions and payments; however, for those who are not familiar with this concept and worry about the safety of their funds and payments, this may not be clear at first . With proper understanding and educational measures, we can help cryptocurrency adopters choose safe, regulated, and licensed digital asset providers so that they can trade with peace of mind.

Widespread adoption of cryptocurrency is still in its early stages, and there are still many obstacles. The close ties between the governments of many countries and the traditional banking industry will raise doubts about digital assets. Taking a top-down approach, government and industry leaders must strengthen this innovative and very beneficial technology. By creating a secure, regulated environment for encryption and promoting healthy discussions and education on the subject, we can further enhance and change the lives of citizens.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Rodrigo Bethanilla He is a Latin American business strategist at Coinsource. Rodrigo has more than 25 years of investment and financial advisory experience, and has a broad professional background in cross-border relations between Mexico and the United States. As the managing partner of Tejas Opportunity Group, Rodrigo is a cross-border private equity firm focused on social impact investment in Texas. He uses his expertise to create opportunities for the Latin American community through strategic business alliances and private equity activities .