Last week, Chileans traded nearly $300 million in bitcoin through localbitcoins.com. The surge in OTC trading shows that the global economic situation has changed greatly.
1. Large scale adoption is in progress
According to the data, the OTC bitcoin trade in Chile has increased sharply since the end of 2016. Although it fluctuates a lot, it shows a sharp upward trend. The week ending February 8 was the largest BTC trading volume so far, and given the recovery of the overall encryption market, it is reasonable to assume that this growth will continue.
For a long time, the popularity of bitcoin in South America has been growing due to the history of inflation and government corruption in this field.
The data shows that Chile’s growing OTC market is not an example, and similar trends can be seen in every country in this field.
Central exchanges in South America are also showing signs of growth. Trading gateways such as foxbit and Mercado bitcoin are proliferating. With the launch of latamex, coin security has recently entered this field.
2. Bitcoin and cryptocurrency become the main economic forces
In the period of economic crisis, with citizens turning to blockchain and cryptocurrency assets, people have made a lot of efforts to popularize cryptocurrency in underdeveloped countries.
However, the fact is that cryptocurrency is also popular in stable developing countries. For example, Chile has experienced stable economic growth and low inflation for more than 30 years.
Other factors suggest that citizens of countries such as Chile are being drawn into cryptocurrency, and the fact that these countries may rely heavily on remittances is an economic activity that cryptocurrency quickly takes over.
Similarly, a large part of the South American population has no or insufficient bank accounts. Therefore, blockchain assets can provide financial services that cannot be provided by traditional financial systems.
It is worth noting that cryptocurrency services at point of sale (POS) are rapidly entering Latin America. For example, pundix soon plans to install thousands of XPOS devices in stores in South America, and other POS companies such as kappture and Cielo also have big plans for this market.
It turns out that in South America and other regions, the overall growth of cryptocurrency adoption proves that significant changes are taking place in the global economy.
Politicians and regulators who have so far chosen to abolish blockchain reform are facing an embarrassing situation and can only come forward to solve it. As cryptocurrencies become more available and user-friendly, the number of records currently used and traded seems to be just the tip of the iceberg.
Responsible editor; zl