Posted 2 years ago | by Ben Armstrong
Crypto World Sets - There is a new hotbed for cryptocurrency. South America is quickly becoming a targeted area by crypto projects. Its a ripe environment for crypto to thrive while many countries on the continent are facing civil unrest & uncertainty.
South America has been marked by political & financial turmoil over the last few years. Obviously, most people know about the situation in Venezuela. The hyperinflation of their currency, the Bolivar, has gotten about as bad as it can get. In Venezuela, it’s so bad that people literally have been making arts and crafts out of the near worthless paper money.
One side effect of the crisis in Venezuela has been the growth of Bitcoin in the country. Recently Bitcoin transactions in Venezuela hit an all time high on LocalBitcoins.com.
However, Venezuela is not the only country that is hurting financially. Argentina is in a financial crisis as well reminiscent of the beginnings of the Venezuelan crisis.
Argentina is also seeing the interest level in Bitcoin rise. Bitcoin is trading at a 4% premium in Argentina right now while the Argentinian Peso has fallen a whopping 30%.
The Peso’s price drop is a reaction to the surprising defeat of Argentina’s incumbent president Mauricio Macri in the primaries. He’s accused of running up too much short term debt that the country cannot pay back.
While most did not believe Macri would have been able to pay off all the debt he racked up, now there is instability in Argentina… and in some ways that’s worse. Macri may have been able to work some deals to keep Argentina from defaulting on its debts. Now that he is no longer in power, someone else is going to have to come up with a solution.
In addition to the financial crises going on in South America, there is another group of people that blockchain projects would like to focus on. Many people in South America are not within a reasonable difference from a bank. Unbanked people are a group that cryptocurrency has tried to embrace and create solutions for.
Estimates put the number of unbanked adults with mobile phones/internet access in South America at 30 million. However, about 45% of South American adults still do not have access to phones or internet so that number could grow much closer to 100 million in the near future as internet access continues to expand.
One crypto project that is particularly interested in reaching the unbanked population in South America is Emogi (LOL). LOL is an IRC-20 token launching on the Huobi Prime IEO platform on August 15th.
LOL wants to make holding digital tokens as easy as possible for this huge South American unbanked population. This will allow this group to enter the world economy by transacting & making purchases with the token. Don’t let this token fool you. It has a funny name, but bringing the world’s unbanked population of 1.7 billion people into the world economy is no laughing matter.