Crypto education can bring financial empowerment to Latin Americans
Categories: Crypto News US
In October 2021, it was estimated that approximately 15% of the world’s supply of Bitcoin (BTC) was in circulation in Latin America. According to a recent report released by Crypto Literacy, however, 99% of Brazilian and Mexican respondents failed a basic assessment on crypto literacy. Crypto adoption is well underway across the region — on the rise even — but, people still lack a basic understanding of its underlying technology and use cases.Latin American populations who lack crypto literacy risk missing out on stablecoins that can offer protection against Latin America’s rapidly rising inflation. As well as decentralized applications (DApps) that provide populations of unbanked individuals access to financial services from their mobile devices. In countries where remittances are a major facet of the economy, cryptocurrencies offer a faster and cheaper alternative for sending funds across borders. Unlocking mainstream adoption through education Education has the potential to address three key obstacles preventing mainstream crypto adoption: financial literacy, trust and safety. Financial literacy Financial literacy, or lack thereof, does not just stand as a barrier to crypto adoption: It stands as a barrier to traditional bank adoption as well. Across Latin America and the Caribbean, nearly 50 percent of the population is unbanked as of August 2021, lacking access to a bank account or other financial services. In addition to living far from financial institutions, many individuals cite an absence of trust in institutions as a reason for remaining unbanked. Where there is little trust, there is often a lack of understanding. Teach where it matters most Crypto has the potential to change the world and those who understand it best will be at a huge advantage. Knowing the power that education creates, it’s important that the crypto world targets audiences strategically to perpetuate already entrenched inequalities. Remote and underserved communities, as well as those with less access to traditional education, should be at the forefront of the recipients of blockchain education.Blockchain technology and cryptocurrencies were built to break through the power structures of traditional finance. They have the potential to drastically improve financial inclusion and freedom in Latin America. So, it’s no wonder that crypto adoption is already on the rise. With mass adoption of such new technology, however, we face a new risk of leaving the most vulnerable populations behind. Education can solve this. Education can create trust in this rapidly-advancing technology and instill knowledge that enables individuals to interact safely with these new tools. Education can break the cycle of financial exclusion.