Crypto Education Could Bring Financial Power to Latin Americans

In October 2021, it is estimate approximately 15% of the world’s Bitcoin supply (BTC) has been circulated in Latin America. According to a recent report release by Crypto Literacy, however, 99% of Brazilians and Mexicans failed in the basic assessment of crypto literacy. Cryptocurrency adoption is well underway across the region – on the rise even – but, people still lack a basic understanding of the underlying technology and its use cases.

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When this fundamental cryptocurrency ignorance is considered in the context of developing markets across Latin America, where the use cases for blockchain technology make real sense, it becomes a serious concern.

Latin Americans lacking crypto literacy risk missing out on what stablecoins can offer protection against Latin America’s rapidly rising inflation. As well as decentralized applications (DApps) that provide many unbanked individuals access to financial services from their mobile devices. In countries where remittances are a major aspect of the economy, cryptocurrencies offer a faster and cheaper alternative to sending money across borders.

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So, how can we help Latin America’s most underserved populations access this life-changing technology? Education.

Related: Mass adoption of blockchain technology and education is key

Unlock mainstream adoption through education

Education has the potential to address three main obstacles preventing mainstream cryptocurrency adoption: financial literacy, trust, and safety.

Financial literacy

Financial literacy, or financial ignorance, is not only a barrier to cryptocurrency adoption but also a barrier to traditional banking adoption. Across Latin America and the Caribbean, nearly 50% of the population has no bank deposits as of August 2021, lacking access to bank accounts or other financial services. In addition to living far away from financial institutions, many individuals cite a lack of trust in institutions as the reason rest no bank. Where there is little trust, there is often lack of understanding.

Related: Decentralized finance may be the future, but education is still lacking

Trust

Speaking from personal experience, it is not uncommon in Mexico to hear stories of parents advising their (adult) children to exchange their savings for US dollars and hide it in a safe instead of trusting those that income with a financial institution. By building financial literacy around broader financial concepts and more focused blockchain-related concepts, we can inspire more trust in financial institutions as a backbone. main column to promote mainstream adoption.

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Safety

The trust that educators earn is more than just trust in financial institutions. It’s also about self-belief: When people don’t understand the organizations and tools they’re interacting with, those individuals are more likely to make risky financial decisions. And, they know it. Education can act as a form of safety net, teaching individuals what rules work and what doesn’t to protect them so they can understand how financial services work. consistent with those regulatory frameworks.

Teach where it matters most

Cryptocurrencies have the potential to change the world and those who know it best will have a huge advantage. Knowing the power that education has, it is important for the crypto world to strategically target audiences to perpetuate the inherent inequality. Distant and underserved communities, as well as those with little access to traditional education, should be at the forefront of blockchain education recipients.

For remote communities, we must create mobile-friendly educational opportunities so that individuals can access learning materials from their phones without having to travel. many miles to the nearest city.

For those with a lower level of education, we must consider multimedia educational materials that minimize the need for literacy without the need for high-level background knowledge.

For women, mentorship programs and role models are key to creating welcoming and inclusive spaces that are explicitly designed to get women involved in crypto.

Related: Women’s interest in crypto is growing, but education gap remains

For a global audience, we recommend creating resources in local languages ​​- Spanish and Portuguese in Latin America – to ensure we reach as wide of a audience as possible.

For everyone involved, we must avoid placing financial barriers to education – believing in the long-term benefits of a growing user base through free and accessible education .

Blockchain technology and cryptocurrencies are built to disrupt the power structure of traditional finance. They have the potential to drastically improve financial inclusion and freedom in Latin America. So it’s no surprise that cryptocurrency adoption is on the rise. With such mass adoption of new technologies, however, we face a new danger of leaving behind the most vulnerable populations. Education can solve this. Education can build confidence in this rapidly evolving technology and impart knowledge that allows individuals to safely interact with these new tools. Education can break the cycle of financial exclusion.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks and readers should do their own research when making decisions.

The views, thoughts and opinions expressed herein are the author’s own and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Abraham Cobos Ramírez is the director of crypto strategy at Bitso, the cryptocurrency platform operating in Latin America, with over four million users. Abraham is a business and blockchain expert with deep experience in the creation, development and implementation of technology solutions. Prior to Bitso, Abraham was a member of the integration consulting team, where he designed and implemented solutions to complex problems for projects in Mexico, USA, Costa Rica, Panama and Colombia.