A new phenomenon that is currently taking place in Spanish speaking countries within Central and South America is the push for mass adoption of crypto. Senators and legislators from the region are pushing for adoption of Crypto, particularly Bitcoin, to be used as legal tender and creating new law’s to attract and promote crypto businesses into the countries that adopt the crypto.
The first country to kick start the mass adoption was El Salvador, when they made Bitcoin legal tender in June. This was discussed in a blog earlier that described the incredible effects this would have, such as enormous volume increase, the country’s financial liberation from the grips of the Federal Reserve, forcing other governments to take the technology more seriously, and especially how the move could rapidly influence other nations to do the same.
Panama shortly followed suit with talks and proposed bills to be signed in congress. Panama’s adoption of bitcoin would be even more significant due to the country’s stronger economy, closer business relations to the US, and most significantly the small country’s weight on the world stage thanks to it’s canal that connects trade from the East to West.
Mexico also began to flirt with crypto adoption earlier last month as Senator Eduardo Murat Hinojoa for the Mexican federal government stated he will submit a proposal to accept crypto as a legal asset. If successful this could speed up the process, as Mexico has the largest population in the Spanish speaking world at 128.9 million people.
Recently, Argentina has had its sights on potentially being a potentially new Latin American country to adopt crypto. In his bill Argentinian Congressman, José Luis Ramón attempted to push for the option to pay salaries in crypto. He argued in a twitter post it would “strengthen their autonomy and preserve the purchasing power of their remuneration.” This would be extremely beneficial to Argentinian’s who are currently experiencing an unsustainable yearly inflation rate at 50%. An Argentinian adoption would be especially significant for CoinFLEX. This is because a nonprofit organisation called Bitcoin Cash Argentina is spearheading a campaign to promote the use of Bitcoin Cash in the country. If successful this would be phenomenal news for CoinFLEX, as we enjoy the 4th largest volume in Bitcoin Cash for an exchange. Furthermore CoinFLEX has developed smart contracts on the Bitcoin Cash Network called smartBCH with de facto stablecoin being flexUSD. This would likely see a large number of Argentinians using our platform and have positive effects on the growth of CoinFLEX and price of our FLEX token.
Meanwhile, Paraguay is preparing to present a bill that would pave the way for Bitcoin adoption in the country. There are theories that the bill centred around Bitcoin mining and tax incentives in the country. Paraguay uses almost 100% renewable energy and only uses 26% of it’s capacity. This makes electricity in the country very cheap, could host significantly more Bitcoin Miners, and is environmentally friendly. If successful a second bill will be presented to make Bitcoin legal tender.