Blockchain in South America: Financial inclusion and more…
Amidst political and economic turmoil, South Americans are turning to blockchain and cryptocurrency as ways to improve financial inclusion and resource management.
We know fairly well by now about the disruptive power of blockchain. The technology underpinning bitcoin is considered a challenge to the long-standing traditional forces which are still holding back development and financial inclusion in some areas.
Latin American fiat currencies are famous for their volatility, so the advent of cryptocurrencies has opened up new possibilities for those who are constantly struggling to make ends meet because of high banking fees and complex bureaucratic procedures. This scenario not only hurts the people, who have no access to services to manage and protect their income, but also restricts commercial and trading growth.
In Brazil, South America’s largest economy, 30% of households have no access to banking services. Alternative payment methods therefore mean more freedom and control over their finances.
The impact of cryptocurrencies is greater in less mature markets with prospects of improvement and growth, such as Brazil and other Latin American economies. “Emerging markets have always had a problem with their financial infrastructure. South America has 40% less banking per head than Europe and even advanced Brazil has 20% less banking than Europe and the US per head,” says Clem Chambers, CEO of Online Blockchain.
“Cryptocurrencies and blockchain give Brazil and emerging economies a chance to leapfrog the legacy issues and the opportunity to steal a march on G7 countries forever hijacked by their bankers.”
Looking into the opportunities in emerging markets, Online Blockchain has just launched Brazio, a token designed especially for the Brazilian population. Brazio is a secure digital currency, providing a doorway into the cryptocurrency revolution for the people of Brazil, with no interference from a central authority or banks.
Brazio is the tool to turn things around when it comes to financial inclusion, as the coin operates on Proof of Work, which means that any Brazilian with a computer can mine the coin at a 0% mining fee. Anyone with a PC or smartphone and an internet connection can transact with Brazio. In fact, Brazio was designed to work optimally on personal computers, empowering individuals over financial institutions.
More than just improving poor financial services, blockchain can help solve fundamental problems in the continent, such as exploitation of natural resources.
An ethereum-based platform in Brazil, BVRio, is using the decentralised nature of blockchain to keep a public record of environment activities and sustainability. Among the services they offer, BVRio tracks the chain of wood and timber sales, all the way back to the origins of the wood, ensuring that every piece has been procured by legal means.
This is another example of the versatility of blockchain’s potential to bring about fundamental changes to society and improve people’s lives in general. Stay tuned for more.