Ripple, one of the famed crypto and payment firms, has released an article detailing major opportunities expected from Latam by crypto firms as its regulated payment rails find their way into the crypto space. Although the region is facing major obstacles because of the dominance of large banks and economic traits, the organization is of the view that partnering with these financial institutions can help open doors for cryptos to the masses.
There is a Huge Opportunity in Latam!
Ripple, a banking payment, remittance, and crypto-asset company, is of the view that Latam is overflowing with potential. In one of the latest articles, the company analyzes the current payment systems and possible integration that crypto firms might get in the area. These opportunities will become more evident as banks become more receptive to cryptos.
The company stated,
“There is a lucrative opening for traditional banks, fintechs, and governments to increase the adoption of crypto-forward technology to help address the underbanked and fragmented market.”
This argument calls for collaboration between fintech firms and banks to simplify and increase transactions in the region.
What are the Obstacles on the Path?
The integration is, however, not without challenges. The traditional money channels are managed by banks. Inclusion in some countries, such as Chile and Brazil, is pretty high, which have 82% and 88% of their population banked, respectively. So, the opportunities in such situations would come from pulling down fees charged by traditional institutions, making people shift to crypto transactions.
According to Ripple, the inclusion of crypto firms in the unfolding debate is very useful for the future of cryptos. The company insisted that smart and progressive regulation will beget more successful regulations, helping to promote more innovation and adoption of cryptos in Latin America.
There is a regulation awakening in Latin America, with nations such as El Salvador and Brazil leading the way on crypto legislation. Brazil legislators are on their way to present a unified crypto asset for approval in the coming months. El Salvador declared Bitcoin as a legal tender last year with the approval of Bitcoin Law.
The possibility of insulation from other regions’ financial shifts presents a major reason why interoperability in Latam and avoiding the emerging de-risking in the US is very important for the local economies.