Crypto key to currency crisis in LatAm?
Cryptocurrency

Crypto key to currency crisis in LatAm?

Blockchain's global nature and liquidity have made it an attractive option for entrepreneurs — and government — in two Latin American countries facing financial crises with vastly different results.

In Argentina, crowdfunding through blockchain has yielded better results than traditional VC funding. Ripio Credit Network was the first to benefit from the ICO fever by securing more than $37 million, creating a blockchain start-up with a working product and solid user base of hundreds of thousands. But it's not the only one -- according to Venturebeat, AstorGame raised over $11 million, Flixxo then grabbed a $5 million raise, and Decentraland nabbed $24 million. In addition, uptake of bitcoin has grown in Argentina as a result of economic uncertainty, and the country has also launched its own cryptocurrency, the buenos.

Venezuela is likewise looking to blockchain and cryptocurrency in the wake of its financial woes, with the government having launched a national blockchain for its own oil-backed petro cryptocurrency in the hopes that it can break the economic blockade imposed by the United States.

 

Cryptocurrency as a crisis solution

Peter Earle, a research fellow at the American Institute of Economic Research, explains that the difference between Argentina and Venezuela where cryptocurrencies are concerned, is in their respective roles as crises have broken out. 

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Bianca Wright

Bianca Wright is a UK-based freelance business and technology writer, who has written for publications in the UK, the US, Australia and South Africa. She holds an MPhil in science and technology journalism and a DPhil in Media Studies.

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