ABC Crypto, Lesson 16: Cryptocurrencies in Latin america. Legal status and perspectives

Latin america is a continent in a perpetual boil. Whether changes in the economic, political or social on a large scale. The stability or boredom are not characteristics with which to identify the hispanic americans. And that also applies to the income of the cryptocurrencies in the markets of these countries. A complex process and is currently in full development.

The reluctance to change

The countries of Latin america have reacted in three different ways compared to the changes generated by the cryptocurrencies. Deciding to face the transformations of the crypto revolution, embrace them or ignore them completely. In general, the reluctance to change has not been a response that has found great acceptance in the american countries. Being concentrated mainly in nations such as Bolivia where the criptoactivos are prohibited completely. Or Ecuador, the country in which the cryptocurrencies can not be used as legal tender. This attitude is motivated essentially by the same fears that haunt the majority of the governments of the world. With respect to the loss of features that, until now, had been dominated by the States. Especially regarding the monetary policy, i.e. the issuance of money in the economy. However, in the case of Latin america we can say that there is another important factor in the game. We refer of course to the lack of understanding of the new technology, and the way in which you can help our countries. So, unlike nations such as China, that if they keep a certain hostility towards the cryptocurrencies. It should be a strategy that is meditated on in order to avoid the loss of power by the government of the country. For the countries of Latin america, is the lack of understanding of well-being which can generate this technology. What it takes to take this type of positions.

A progressive attitude

However, just as there are countries in Latin america that reject the criptoactivos. There are other nations such as Mexico, who have assumed the attitude is just the opposite. Trying to modernize its legal framework to include virtual currencies within the same. In this way, Mexico would try to attract to its territory the investments in the field of cryptocurrencies and technology Blockchain can be in America. And, therefore, encourage the creation of wealth that the companies dedicated to these assets generate once installed. This, in a continent marked by poverty and lack of development, is a fact of importance. Since, as we have mentioned several times in CriptoTendencia. The cryptocurrencies generate a series of positive effects that encompass the entire economy. Including, but not limited to the creation of jobs, wealth, and knowledge of technology Blockchain. Mexico, a country where there is growing use of the Cryptocurrencies in particular the Bitcoin

The indifference of the alegalidad

Unfortunately, the proactive attitude of Mexico is not the norm for Latin america. Since in the majority of the governments of the region, queen apathy when it comes to cryptocurrencies. Contrasting the attitude of the rulers with the of the societies. Increasingly interested in the Blockchain and the cryptocurrencies. But without a legal framework that allows them to exploit all their potential. Thus, the cryptocurrencies are found in almost all the countries of the continent in a situation of alegalidad. That is to say, without having an standard concerning them, either to forbid them or to regulate them. Thus being in a legal limbo that promotes uncertainty for businesses that want to operate with them. And is that, in many Latin American countries such as Paraguay. Although the cryptocurrencies are not prohibited. The State does not provide warranty of any kind for businesses or users who are involved in their use. Leaving, in this way, a significant part of the population in a situation of disadvantage. Particularly when compared with countries that are more progressive. Where companies of cryptocurrencies are being developed to their hearts content. Protected your property and rights by the State in which they are. And so, taking the lead in the race for the cryptocurrencies. Compared to the countries where the alegalidad generates uncertainty. However, in CriptoTendencia we have reason to be optimistic about the future of the cryptocurrencies in Latin america. Therefore, although at the present stage seems to be marked by indifference to the criptoactivos from the spheres of government. Populations in general have been very receptive to virtual currencies. So, we can expect that in the medium term the pressure of society to force governments to act. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.

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