Ripple Identifies Crypto Opportunities in Latin America
Cryptocurrency
and payments company, Ripple, has published an article on the opportunities
that Latin America has for crypto companies as its regulated payments rails turns to
crypto. While the region faces some obstacles due to its socio-economic conditions and
the dominance of centralized banks, the organization believes there is a
lucrative opening for companies partnering with these banks to bring crypto to
the masses.
Ripple, the
banking payments, remittances, and cryptocurrency company, believes that Latin
America could be a hotspot of opportunities for crypto companies in the future.
In a recent article, Ripple analyses the current payments and the possible
integration that crypto services may find in the region. According to the
company, crypto companies might find these opportunities when banks start
integrating cryptocurrency services into their platforms.
Regarding
this idea, the company stated:
"There
is a lucrative opening for traditional banks, fintechs, and governments to
increase adoption of crypto-forward technology to address this underbanked and
fragmented market."
These points
to the idea of crypto companies collaborating with banks and fintech companies
to take an active role in the main rails for transacting and making payments in
these countries.
Barriers to the
Process
However, this
integration process would likely not be without its hiccups. Traditional
payment rails are managed by banks in the region, and banking inclusion is very
high in some of the largest countries, with Brazil and Chile having 88% and 82%
of their populations banked, respectively. The opportunities come in the form
of offering services with lower fees than traditional institutions, which could
make people move from cash and other payment methods to digital transactions.
According to
the article, the inclusion of crypto companies in the different debates that
are happening regarding regulation will also be very important for the future
of crypto in the region. Ripple believes that this process will be positive,
stating that:
"Smart
and progressive regulation will lead to
increased innovation and progress around crypto across Latin America."
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