Bitcoin in Emerging Markets: Latin America

In advance of her “Crypto Across Emerging Markets” panel at Consensus: Distributed on May 11, Leigh Cuen is writing a three-part column on how cryptocurrencies are used in the developing world. The first installment explored bitcoin adoption in the Middle East and the second covered Africa.

Some believe the broader economic crisis might lead to “dollarization” in emerging markets, where people increasingly use global currencies like dollars instead of their local fiat. 

It remains unclear how bitcoin will play into that prospective shift, as bitcoin is still too immature to be predominately used as a competing currency. But crypto entrepreneurs are still giving it a try anyway.

The Colombia-based startup Valiu offers Latin Americans access to remittances and bitcoin-backed, synthetic dollar savings accounts. This means you can send fiat across borders and, when you’re not cashing out, the value is denominated in dollars by behind-the-scenes bitcoin derivatives. 

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