COLOMBIA
From university students to large investors joined this trend
2017 was the year of cryptocurrencies in Colombia, according to reports from specialized sites that monitor these transactions.
In fact, one of the largest person-to-person bitcoin buying and selling sites, Localbitcoins, indicated that transactions made with Colombian pesos grew 1,200% during 2017.
Colombia is located, according to this ranking, in the third place of the countries, in percentage, in which the local currency exchanges grew the most by cryptocurrencies (and vice versa) behind China and Nigeria, which exceeded 2,000% and 1,400 % respectively.
Venezuela appears in fourth place on the list with more than 700% increase in purchase and sale.
LocalBitcoins confirmed to BBC Mundo that these figures are based on the type of currency used for the transaction and not necessarily in the country where the exchange takes place, so Colombian pesos could be used for large transactions in other parts of the world. .
These estimates have already aroused warnings in the government, which insists on clarifying that bitcoin is not a valid currency in Colombia.
The authorities fear that behind these large financial movements can hide illicit activities such as money laundering.
Despite the warnings, the experts consulted by BBC Mundo suggest that Colombia must work on specific regulations because the use of cryptocurrency in the country is already a reality.
The cryptocurrency and bitcoin phenomenon in Colombia is growing at such a level that there are already entities that hold workshops and seminars on the use of cryptocurrencies.
One of the entities that carries out these activities is Investopi, a financial education platform based in Bogotá, which regularly provides training on the use of bitcoin for beginners and experts.
In addition, people of all strata and all ages already have significant investment funds as people with limited amounts of money to invest.
A survey conducted by Investopi among 600 people interested in buying and selling bitcoins indicates that the majority of investors are between 25 and 44 years old.
Of these, 44% is declared independent sector, 42% is employed, 8% comes from the world of investments and 5% are students.
In addition, it is believed that one of the causes of the increase in the use of bitcoin in Colombia is the high banking cost for international transfers and how complicated it is to carry them out.
That means that if a person decides to send money to a family member it will be much easier through bitcoin and they will also receive the money. In Colombia, remittances are received more and more in bitcoins.
On the other hand, Colombians are in the habit of looking for investment alternatives with low amounts, so the profitability of cryptocurrencies is attractive.
The vast majority of people invest looking for profitability in the short term, that is their greatest desire.
It should be noted that throughout 2017, bitcoin reached a record price of almost US $ 20,000, although it was drastically reduced at the end of the year to a value of US $ 13,000.
Despite the collapse, it was a spectacular year for those who invested in the cryptocurrency.
At the beginning of 2017, the price of bitcoin was only US $ 1,000.
The increase in purchases and sales is perfectly possible in developing countries and emerging markets, if we take into account that we speak of a quick way to obtain benefits.
On the other hand, the Colombian government, through the Ministry of Finance, informed BBC Mundo that it is aware of the growth in the use of cryptocurrencies as has happened in the other countries of the region. This phenomenon can be attributed to speculative reasons about its future value. The value of cryptocurrencies is highly volatile since these assets have no intrinsic value, but depend on the demand of the public, which in turn depends on the trust in their attributes as a means of payment and deposit of value.
The government expressed concern that the anonymous nature and the difficulty in tracing the transactions of cryptocurrencies increase the risk that these assets will be used for money laundering and terrorist financing.
It also warns about the possibility of embezzlement, fraud and fraudulent business such as pyramid schemes, something that was also pointed out by the experts consulted by BBC Mundo.
Since 2014, when the bitcoin phenomenon was noticed in Colombia, the government pointed out that it is not a currency in Colombia and, therefore, it is not a means of payment.
This means that the cryptocurrency can not be used in a transaction with any state entity and nobody is obliged to receive bitcoins as a form of economic compensation.
However, as Marcelo Granada of Investopi points out, this restriction does not limit private transactions, which is what now happens in Colombia.
In December of last year, the company Athena Bitcoin announced the installation of a network of ATMs in Colombia to buy and sell the cryptocurrency taking advantage of current trends.
VENEZUELA
The value of the dollar in Venezuela has many variants. With two official rates, the Dipro and the Dicom, and at least the new parallel benchmark rates that are calculated using supply and demand methods in the foreign exchange and exchange platforms, Venezuela has positioned itself in March 2018 among the countries with the highest volumes. of transactions in buying and selling bitcoins, approaching the figures of China, Russia and Europe.
Data published by LocalBitcoins - a digital ecosystem created in Finland in 2012 - shows that in March a total of 4,692,432,595,741 bolivars were traded, that is, about 4.7 billion, equivalent to 15,301,172.34 dollars, an average rate of $ 6,690.63 per bitcoin. In addition, with a rate of 2,152,480,113.50 bolivars per bitcoin, which gives a rate of 321,745.9, similar to that announced by AirTM for March 30, 2018. A value that is also used as a new reference, It is used by those who send from abroad since 2013, according to records from the web, by "extra-stock" mechanisms, that is, without using intermediaries but using peer-to-peer technology like the UBER company.
BRASIL
Signatures supporting bills in Brazil could be stored and processed using Ethereum blockchain technology. This means that the votes in favor of any proposal would be counted in a secure manner and the congress would be obliged to discuss the petitions that are backed by more than 1% of the electorate.
The proposal is led by the Law Professor of the University of Brasilia and Congress Advisor, Ricardo Fernandes Paixão and by Everton Fraga, a programmer of the Ethereum Foundation, and was presented at DevCon3, the Ethereum programmers conference, last November in Cancun, Mexico.
With 145 million voters, popular petitions in Brazil (bills of popular initiative) face the difficulty of collecting and verifying a minimum of one and a half million signatures, as it must exceed 1% of the electorate. According to the law, if the support of 1% or more of the electorate to a project is verified, it must be discussed at the congress.
In this sense, the Paixão y Fraga proposal contributes to the efficiency of the process of presenting bills that have the appropriate consensus.
By encrypting the signatures, with all the pertinent data of those who support a bill in the blockchain network of Ethereum, not only the vote is unchangeable, also each voter can check that his participation has been effectively registered and the accounting is done in a automatic, in full view of everyone.
It is not the first time that Brazilian legislators show an interest in cryptocurrencies or the underlying technology. Last December a special commission of the Chamber of Deputies of Brazil began a public debate on the legal implications of the use of cryptocurrencies.
ARGENTINA
Since it emerged anonymously in 2008, Bitcoin was adding followers around the world. In the background, there is a technology, a common database hosted on thousands of servers around the globe, which contains the payment history of each and every one of the bitcoins in circulation and which provides proof of ownership at all times. This is where the true machinery of trust lies that makes this virtual currency an attractive bet for entrepreneurs and local venture capitalists.
As the mass of Bitcoin users becomes significant, the first companies that establish their businesses around this currency emerge. In Argentina there is already a community of more than 10,000 local bitcoiners, although the challenge is to break the barrier of enthusiasts and reach a diverse public that could find solutions to certain financial obstacles, with unbanked users as an ideal target.
According to data from the NGO Bitcoin Argentina, there are currently around 15 companies in operation, including local developments and companies abroad with a presence in the country. The vast majority works on the financial uses of currency: from specialized exchange houses to digital purse services, collaborative loans in bitcoins or processing companies, intermediaries between a person who wants to pay in this currency and an operation that he wants to charge in pesos. There is also room for very risky investors, with personalized funds. A company even sells ATMs so that someone with bitcoins can survive in the local currency.
In the country, although the offer is select, you can pay for services with bitcoins and pay in certain restaurants, bars and ice cream parlors. The electronic commerce of household appliances allows payments in the currency and there are even psychologists, private tutors and lawyers who accept it. In addition, there are services from abroad that can be paid with bitcoins.
Argentina is the most advanced market in Latin America in terms of cryptocurrencies, "says Ciro Echesortu, of the regional fund NXTP Labs, which invests in six companies associated with digital currency." It is a long-term commitment; as more users try the solutions, the ecosystem will be strengthened ",
Two years ago, companies began to seem to consolidate the currency in the financial system. The first wave of start ups facilitated the entry to bitcoins. While some have matured, public adoption times are slower. Lack of regulation ", summarizes Santiago Siri, one of the partners of the Argentine Bitex.
CHILE
In Chile there are no large businesses that accept this means of payment, and 70% of national investors use cryptocurrencies as a means of investment or speculation. But the currency gains followers. "I am certain that the use of bitcoin and other cryptocurrencies will generalize or massify in the world economy and drastically reduce the costs and time of transfer in commerce," says lawyer Fernando Barros, who participates in the ownership of one of the platforms where the virtual currency is traded.
In Chile, cryptocurrencies are an incipient business, but with an accelerated growth. There are four large companies: SurBTC (with 12 thousand clients), ChileBit.net (6 thousand), TradeBTC and Yaykuy, with a thousand each of these last two.
PERU
Use of cryptocurrencies grew by more than 50% in Peru, according to BitInka
The number of people, companies and institutions that are interested grow hour after hour while the volume of money that is being poured into cryptocurrencies seems to have no limit.
The cryptocurrency market has experienced accelerated growth and even more this year. BitInka, the most important exchange in the region and leading startup in Peru, exceeds 31 thousand individuals, hoping to close the year with more than 40 thousand users.
The number of people, companies and institutions that are interested - the company points out - grow hour after hour while the volume of money that is being poured into cryptocurrences seems to have no limit.
In this regard, Roger Gabriel, Bitinka's Founding Partner comments that investors and traditional institutions are beginning to create investment options that include Bitcoin and other cryptocurrencies "for the adoption of Blockchain technology (technology that supports Bitcoin and the rest of the cryptocurrencies), which is being used for many cases beyond monetary, economic or financial applications, "he explained.
Regarding the Peruvian market, the expert points out that the number of users who have started using our platform has multiplied exponentially, "both for natural persons and companies, which has allowed us to have a 53% inter-monthly growth during 2017. Many of the users, thanks to our InkaPay solution, which uses the Blockchain technology to generate a channel of international payments and remittances, have generated another basic and often speculative monetary use of Bitcoin, as well as other cryptocurrencies thus helping its growth " he commented.
It is clear that the future of cryptocurrencies and Blockchain is huge. It is the future, not only of money, but also of the Internet. Blockchain technology evolves to transform it into the Internet of value. The traditional financial system and the current global power structure will be totally influenced by this technology. We are absolutely convinced of this, "he adds.
Regionally, there are countries such as Brazil, Argentina and Venezuela where the market of these currencies has grown as much or more than in Peru, this due to a logically attractive factor such as the increase in the value and price of Bitcoin with more than 1,600% increase in the price in dollars during the last 12 months, according to Bitstamp.
ECUADOR
Cryptocurrency fever envelops the world, but Ecuador delays it. The Central Bank (BCE) confirmed that the popular bitcoin "is not a means of payment authorized for use in the country."
The statement of the entity also leaves open the possibility of buying and selling for the virtual currency enthusiasts. It is clarified that if bitcoin is accepted on a regular basis it is because its value depends only on speculation.
This has not prevented certain companies from accepting it, since the "wink" of this currency is in its decentralization of banks and governments.
Ecuador has its 'cryptomaniacs' club
Juan Fernando Carpio is an economist and part of this club based at the University of San Francisco in Quito. The first thing he denies from his experience is that Bitcoin is a currency without backup.
This inconvenience, according to him, only happens to the physical money: "The dollar is only debt because it is a liability in the accounting sheet of another person, that does not happen with gold or bitcoin".
BOLIVIA
The Crypto-Currency market in Bolivia is going through difficult times, although the crisis probably will not last forever. Sooner or later, the market in the country will rise like a phoenix. In this article we discuss the country of Bolivia and its relationship with Crypto-Coins.
The government is now trying not only to prohibit the use of Crypto-Coins, but to pursue and raise charges against any person who promotes this market.
Fortunately, Bolivia is not the first country to be hostile to Bitcoin and Blockchain technology. There are many other examples in which governments tried to prevent people from using Crypto-Coins, but their efforts have been useless. All that is needed is a strong community with advanced knowledge of technology and decreasing hostility, thanks to the fact that the same community usually ends up helping governments and regulators understand how to maximize their benefits.
URUGUAY
Cryptocurrency is expanding worldwide and our country is not far behind. With the birth of bitcoin in 2009 the door was opened to a new market of assets based on "blockchain", which despite its volatility are constantly growing. In Uruguay, although there is a noticeable growth of the community over the years, 2017 represented an exponential increase in those interested in bitcoin, which grew at the same or higher rate than the cryptocurrency quote. There are many actors involved in various areas such as trading, mining, education, and even as a payment method for their businesses. In our country, many of these actors are connected through a group called Bitcoin Uruguay, a community of people interested in cryptocurrency linked by WhatsApp and Telegram groups, which grows exponentially day after day.
The cryptocurrency that emerged after the bitcoin is called "Alt Coins" in reference to being alternative currencies. Some like Ripple, Litecoin, Deeponion and Dash have gained popularity in the last time, but they require an extra effort to get them. More and more investors are investing in these cryptocurrencies because their prices are lower, which gives them higher expectations of growth and profits. Some of these coins can go up more than 100% in a day. The first step to buy an "Alt Coin" is to have bitcoins and register in one of the most recommended cryptocurrency exchanges. These exchange sites allow you to buy and sell a large set of crypto currencies, but do not accept dollars as a deposit.
PARAGUAY
The monetary system always evolves in relation to the technological events of the times, so it is logical that in the age of networks, this abstract concept called money also adapts to networks and now Paraguay is an integral part of this complex network of exchanges. Monetary
According to the Bitcoin Paraguay website, there are three commercial establishments in Paraguay that accept the virtual currency that continues to speak. The shops are: USA Shopping Express: courier service from Miami to Paraguay. Ward Store: Sale of watches. And La Victoria Motors: Sale of vehicles. By definition, cryptocurrencies are a creation of an anonymous group of people who call themselves Satoshi Nakamoto, whose objective is to correct the financial shortcomings of the world monetary system and to adapt it to the digital era full of constant changes.