фото показано с : invezz.com

Hubble Protocol, the home of Solana’s premier stablecoin USDH, is laser-focused on Latin America. Hubble’s co-founder Marius Ciubotariu believes that Latin America provides a new growth base for stablecoins.

Stablecoins adoption in Latin America is already fast outpacing the rest of the world.

It is a fact that many Latin American countries rely on remittances from abroad. According to IDB, in 2021 Latin America and the Caribbean received $127.6 billion in remittances, constituting a 26% annual growth and the highest in the past 20 years.

Now, besides the costs of the remittances being quite high, many in Latin America do not have access to banks. The World Bank estimates that more than 60% of Latin American adults do not have access to credit, checks and other banking tools leaving them vulnerable to sky-high exchange rates and fees for OTC transfers.

This creates a perfect opportunity for cryptocurrencies and decentralized stablecoins which address many of the remittance challenges.

Additionally, inflation is currently rampant in Latin America. According to Weforum, Latin American countries are facing the highest rates of inflation in 25 years. In Argentina, for example, the inflation rate has increased from 71% in July to 78.5% in August. Inflation is expected to worsen in 2023.

Venezuela, another Latin American country, is experiencing hyperinflation that is significantly elevated compared to its neighbouring countries.

Outlining his case, Marius said:

“Cryptocurrency in Latin America is alive and well. In fact, the region is poised to be the next biggest growth market for stablecoins – bigger than anything we have seen in the US to date. Latin America is currently facing unprecedented economic challenges, with record-breaking inflation posing an existential threat to many of its citizens. Many are reliant on remittances from abroad; however, these transfers attract high fees, particularly for the huge swathes of the region’s populace that remain unbanked. This situation is creating a perfect storm for decentralized stablecoins, which directly address many of these challenges and are being rapidly adopted in Latin America.”

According to Mastercard’s New Payments Index 2022, 51% of consumers in South America used crypto assets to transact. This compares to a relatively lower rate of crypto adoption in developed countries.

According to Pew Research, only about 16% of Americans invest in, trade and use cryptocurrencies. A survey conducted by cryptocurrency exchange Gemini shows similar numbers in Australia and Europe.

With the widespread adoption of cryptocurrencies in Latin America, stablecoins are finding solid ground in Latin America.

Contrary to their prices being determined entirely by users, stablecoins are pegged to low-volatility assets making stablecoins less volatile than other cryptocurrencies.

According to Marius Ciubotari, all the above constitute an exciting development that Hubble Protocol is excited about and is increasingly exploring on the ground in the region.

The post Hubble Protocol laser-focused on Latin America, the new stablecoins’ growth base appeared first on Invezz.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

198 +