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Understanding Mass Cryptocurrency Adoption and its Implications for a Region
Conferences, regulatory hearings and Initial Coin Offerings (ICOs) have all contributed to the popularization of cryptocurrencies like Bitcoin. However, the real worth of cryptocurrency lies in mass adoption, and South America is leading the charge in this regard.
A major decision by the Brazilian government will establish South America as the “gateway for crypto adoption.” In a deal finalized by Indonesia-based Pundi X, a cryptocurrency point-of-sale (POS) terminal supplier, and BitCapital, a Brazilian Over The Counter (OTC) service provider, more than 1000 point-of-sale terminals will be installed in Brazil.
The terminals will enable hundreds of retailers to accept payments in multiple virtual currencies.
While Pundi X is the first terminal of its kind to accept multiple cryptocurrencies as modes of payment, BitCapital is developing a payments infrastructure that makes crypto-to-fiat transactions as seamless as possible. it is expected to be a partnership that is well-aligned in South America’s largest economy.
South American countries have been quick to adopt Bitcoin as a mode of payment. These POS terminals give people the opportunity to utilize their crypto assets for daily transactions.
Financial Institutions versus Economic Need
Unfortunately, income disparity in South America is a tremendous problem. The anti-crypto attitude of banks and traditional financial institutions create further hurdles on the path to mass adoption of cryptocurrencies. Venezuela is a prime case study, and its economy experienced alarming hyperinflation around 82,766% last month.
Looking Ahead to a Brighter Economy
A significant opportunity for blockchain companies has arisen in the area of social impact. These companies are well-poised to alleviate the struggles being faced by unbanked and underbanked populations. As such, this deal between Pundi X and BitCapital can undoubtedly have uplifting effects on South America’s struggling economy.