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‘Latin American Crypto Revolution’ Signals for New Phase of Web3 Adoption

Sat, 05/21/2022 - 12:49
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Here’s why the meeting of 44 finance chiefs in El Salvador is important for global crypto industry
‘Latin American Crypto Revolution’ Signals for New Phase of Web3 Adoption
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The Bretton Woods Conference saw 730 delegates from 44 different countries meet to discuss international monetary and financial order following the end of World War II. This month 44 countries met again, except this time with a very different topic in mind: cryptocurrency. El Salvador hosted the countries, composed of 32 central banks and 12 financial authorities, to encourage a wider acceptance and expansion of cryptocurrency. This has since become known as the ‘Latin American Crypto Revolution’. 

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In many ways, El Salvador is the frontier of crypto adoption; eight months ago it became the first country to accept Bitcoin as an official currency and President Nayib Bukele doesn’t want to stop there. He plans to construct Bitcoin City underneath the Conchagua volcano, which has been described by his advocates as a ‘crypto utopia’. Ideally, he wants to construct volcano-powered crypto mining for the city. Nayib Bukele also had plans in place to issue the first sovereign bond linked to cryptocurrency. However, due to recent stock market losses, this has temporarily been put on hold.

Surprising backlash

Thousands took to the streets to protest the introduction of Bitcoin as legal tender. The demonstrators had huge concern for the economic stability of their country following the decision. Considering cryptocurrency’s volatile market, protestors were concerned that it would bring instability and inflation to the country.

The protestors also accused Nayib Bukele of being a dictator. They see the move to cryptocurrency as an authoritarian decision that tightens Bukele’s grip on power, especially as crypto is not widely understood and does not have the same regulations as traditional banking.

These concerns have been recently proven very well-founded. Since officially adopting Bitcoin in September it has fallen 45%, with headlines announcing that El Salvador has lost $36 million in this crash. El Salvador’s holdings have therefore suffered a one-third decrease in value, a massive hit for the country. However, all is not lost, the crypto market is infamously volatile and there’s a lot of hope that Bitcoin’s value will climb back up over the coming years.

Latin America welcomes cryptocurrency, here’s how

Historically, Latin American finance has been hugely influenced by the US, often with very negative results. The Bretton Woods Conference founded the International Monetary Fund (IMF) which provides structural adjustment loans for countries that experience economic crises. These policies encourage countries with fledging economies to adopt neoliberal pathways to development, neglecting to consider the restraint this places on them.

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By moving towards crypto, Latin American countries break free from traditional banking influenced by the US. This is appealing because it separates from markets that are heavily controlled by the Northern Hemisphere and allows them to carve their own financial path that isn’t dictated by foreign countries.

Also, El Salvador isn’t the only country to now legalise Bitcoin as tender. The Central African Republic became the second country in the world to accept it last month, proving a global growing interest and trust in cryptocurrency.

Firepin’s FRPN presale is underway

Although there is a current market dip with most coins hugely decreasing in value, the market is still growing in many ways. Tonnes of new presale coins are entering the crypto market right now. One example is FIREPIN Token (FRPN), a novel multi-purpose cryptocurrency ecosystem.

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FIREPIN Token (FRPN) is focused on building community and democracy, with investors able to vote on economic decisions made by the coin. This directly opposes the authoritarian concerns around cryptocurrency by directly encouraging transparency. As such, coins like FIREPIN Token (FRPN) will offer a new alternative for first-gen currencies.

FIREPIN

Join Presale: https://presale.firepin.io/register

Website: https://firepin.io/

Telegram: https://t.me/FIREPINOFFICIAL

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