The cryptocurrency and blockchain ecosystem will develop organically in countries and regions where there are real cases of uses of these assets, forecasts the CEO of Transfero, Thiago César, in Davos, during a parallel event to the World Economic Forum. Today it is already possible to demonstrate this through various examples in Latin America where cryptocurrencies are solving people’s real problems.
The executive mentioned the Venezuelan case. In that country, the public is using bitcoin as a means of survival. At the other end, citizens are taking advantage of the low cost of energy, subsidized by the government, to mine bitcoin and have a means of survival in the face of an almost humanitarian crisis in that country.
The case of Argentina was also mentioned. There, the cryptocurrencies are being used to combat inflation and strong capital control.
Brazil was not left out of the executive’s speech. Here, although the situation is not as complicated as in Argentina and Venezuela, Brazilians are using cryptocurrencies to access the international financial market in the face of the impossibility of having a bank account in foreign currency and a limit for buying dollars per person.
The main Brazilian use is to have a solution in the face of existing capital controls in the country. “Since 2016, small and medium-sized companies have been buying bitcoin to trade for dollars outside Brazil. It is a case of real use of cryptocurrencies in the area of finance”, says Cesar.
Since 2016, small and medium-sized companies have been buying bitcoin to trade for dollars outside Brazil. It is a case of real use of cryptocurrencies in the area of finance
Stablecoin is one of the cases of cryptocurrency uses
Thus, while it makes no sense for a British or Swiss citizen to exchange their net currencies internationally for a stablecoin, for Brazilian citizens and companies it makes a lot of sense. In fact, this is the problem that the BRZ, stablecoin pegged to real, proposes to solve. “BRZ is a currency that we created as a means to internationalize the Brazilian real”, Cesar said.
In this sense, countries in Latin America and Eastern Europe can benefit greatly from blockchain technology and in those countries are the main business opportunities in blockchain and cryptocurrencies. “The bitcoin and cryptocurrencies will enable a rearrangement of the international financial system where countries of these locations will no longer need intermediaries to trade”, the executive concludes.
Thiago Cesar participated in the World Leaders Blockchain Ecosystems panel during the special edition of the CV Summit in Davos, Switzerland, during the World Economic Forum.