Marc Gericó: “Faced with the serious problem of inflation and the need not to miss the opportunity of technological development, the adoption of cryptocurrencies in Latin America has been very important”
Some Latin American countries have taken the lead in the use of digital assets. Many of them, such as Argentina, have experimented the limitation of the local currency they can exchange for international currencies, such as the US dollar or the euro, and they have found in cryptocurrencies a way to stabilize their exchange rates and the national economy.
El Salvador, for example, declared the cryptocurrency as legal tender last September. Cuba and Venezuela also make use of this digital asset; in this case, to be able to purchase goods and services while fighting against U.S. sanctions.
These countries have embraced cryptocurrency given the low penetration of traditional financial services in the region, inflation spikes, currency fluctuations and a widespread familiarity with sophisticated payment methods in certain countries, adopted to combat high fraud rates.
In the opinion of our managing partner, Marc Gericó, for Law.com, “given the serious problem of inflation and the need not to miss the technological development train, the adoption of cryptocurrencies in Latin America has been very important“.
Our consultancy accepts digital assets as payment for services (Bitcoin and Ethereum) since last year. This new modality was born to support flexibility and diversity, especially in countries such as Argentina, where its companies have already taken the step to pay their suppliers with cryptocurrencies.
Latin American and Caribbean law firms want to advance digitally at the same pace as the region, which is ahead in this aspect. Therefore, they are trying to keep up to date and increasingly boost their areas of privacy and data protection, intellectual property, technology and consumer finance.
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