We had a plethora of stories about the changing wind in Central and South America. Many factors contribute to the collective shift toward embracing cryptocurrencies. In some countries, the trend starts from the bottom with people trying to hedge against their fiat currencies by investing in crypto. In other nations, governments see the potential value of using more BTC and ETH in international trade.
Following the example of multiple countries around the world, El Salvador is thinking about implementing cryptocurrencies in its global financial endeavors. Recently, we covered a story about the Iranian government’s new efforts to pay for more imports with BTC and ETH to avoid sanctions and other restrictions.
El Salvador is looking to not only use crypto but also sell their goods for cryptocurrencies instead of fiat money. This country has a long history full of different ups and downs, but it is often described as a victim of neocolonialism and an underdeveloped industrial sector. The whole economy is focused on agriculture and exporting vast riches of its generous soils to other countries. For example, it is known for mostly bananas and other tropical fruits.
You hardly ever see any other products that come from El Salvador. One of the reasons is that the nation is dependent not only on USD-based trade but also on credit lines extended by the IMF. In terms of international financial relationships, the country does not have many options. It is something that severely limits its growth potential.
Within the country, independent businesses looking into opportunities to use cryptocurrencies are opposed by long-standing corporations with their success built on top of millions of ruined lives. However, it is not like the people are happy with the current fiat system and a weakening economy that has been slowly collapsing due to the pressure from the USD. Bitcoin will have to become an alternative against the risks of inflation and collapsing international trade.
Just like Peruvians and Venezuelans, citizens of El Salvador are trading bigger volumes of crypto and moving their economies toward nationwide adoption naturally. Let’s hope that their next step has been already made.