Latin America (LATAM) is increasingly establishing its significance in the global cryptocurrency landscape. In Colombia, Nexo has become a member of the Fintech Association, marking an important milestone in its regional growth. At the same time, Worldcoin is expanding its World ID verification service into Guatemala, tackling digital identity challenges in a landscape ever more influenced by artificial intelligence.
This article delves into these and other developments, such as the surge in cryptocurrency adoption in Bolivia and Brazil’s progress toward establishing its central bank digital currency (CBDC).
Bolivia’s Cryptocurrency Transactions Surge After Ban Lift
Since the Central Bank of Bolivia lifted its longstanding ban on digital assets in June 2024, the country has experienced a rapid increase in cryptocurrency activity. The Central Bank of Bolivia (BCB) has reported a 100% increase in crypto transactions within just three months. From July to August, Bolivia’s average crypto trading volume skyrocketed to $15.6 million—double the $7.6 million logged in the first half of the year.
Read more: Crypto Regulation: What Are the Opportunities and Challenges?
Stablecoins have emerged as a preferred option for many Bolivians, presenting an alternative for e-commerce and international transactions. BCB President Edwin Rojas emphasized the importance of this transition.
“The utilization of virtual assets is a positive step toward modernization and economic integration with the global market to enhance international commercial and financial activities. Since the new regulations took effect, the public has gained access to alternative mechanisms for processing transfers and e-commerce payments, among other activities,” Rojas stated.
Despite these advancements, Deputy Mariela Baldivieso, a supporter of cryptocurrency, stresses the need for further efforts. Bolivia still faces obstacles, especially in terms of financial literacy and regulatory frameworks. Baldivieso believes that with enhanced educational initiatives and clearer regulations, Bolivia could emerge as a center for crypto innovation in the future.
Worldcoin Launches Digital ID Services in Guatemala
Worldcoin is expanding its reach in Latin America by rolling out its World ID verification service in Guatemala. Starting September 25, Guatemalan users can verify their identity as humans using Worldcoin’s orb technology, addressing growing concerns about the authenticity of online interactions in a bot-driven environment. A simple download of the World App and an appointment at an orb location allow users to ensure their online interactions are legitimate.
A recent survey revealed that 83% of Guatemalans are worried about differentiating between content generated by humans and that generated by bots. The introduction of World ID is perceived as a solution to enhance security and transparency in digital interactions.
The launch in Guatemala follows Worldcoin’s recent expansions into Ecuador and Mexico, where there has been significant interest in the technology. However, as Worldcoin’s presence grows in Latin America, it has ignited debates about privacy in nations like Argentina, where concerns regarding the protection of biometric data have led to discussions on regulatory measures.
Nexo Targets Growth in Colombia with Fintech Association Membership
On September 26, crypto lending platform Nexo officially became a member of the Colombia Fintech Association. This collaboration enables Nexo to integrate into the Colombian financial ecosystem and offer digital asset solutions. By joining the association, Nexo also aims to engage further with the local fintech landscape and explore potential synergies within the sector.
In a statement to BeInCrypto, Elitsa Taskova, Nexo’s Chief Product Officer, noted that the partnership with the Colombia Fintech Association reflects Nexo’s dedication to delivering innovative digital asset solutions.
“Colombia presents a unique opportunity: with an impressive 92.1% of the population already accessing crypto-related services, the nation is making a significant advance toward digital finance. […] We’re not merely entering a market; we’re empowering millions of Colombians with accessible digital asset tools and helping to shape the future of finance in Latin America,” Taskova said.
These solutions address the country’s rising demand for stablecoins and secure cross-border transactions. Over the past year, Nexo has reported a 73% increase in local clients utilizing its crypto-yield products. The interest in cryptocurrencies, particularly stablecoins, in Colombia has been fueled by remittances and the growing necessity for digital financial services.
Paraguay Unveils World’s First National Blockchain to Promote Sovereignty
Paraguay is making headlines with its development of Legaledger, the first third-generation blockchain network designed for national sovereignty. This initiative, spearheaded by the Paraguayan Blockchain Chamber, aims to provide secure blockchain solutions for both public and private sectors, encompassing financial, civil, and military transactions.
Ricardo Prieto, the director of the Blockchain Chamber, explained that Legaledger is based on Hyperledger technology. It is intended to deliver legal certainty in blockchain transactions, tackling issues of security and fraud.
“Our blockchain network model is fractal. […] It can be applied in a company, conglomerate, state, or country with the same design, all remaining interoperable for sequencing, publication of processes or transactions, including international operations,” Prieto elaborated.
Through its sovereign blockchain model, Legaledger aims to position Paraguay as a global frontrunner in blockchain governance and innovation. The organization plans to extend its solutions internationally by 2026.
Brazil’s CBDC Initiative DREX Advances to Second Phase
The Central Bank of Brazil is advancing its CBDC project—DREX. The institution has recently entered the second phase of its DREX pilot program, concentrating on 13 strategic initiatives that will evaluate the feasibility of smart contract-based financial services.
“We will also explore the use of assets not regulated by the Central Bank. To this end, we are collaborating with the Securities and Exchange Commission (CVM). Other regulatory bodies have also expressed interest in experimenting with operations involving assets under their jurisdiction to broaden the platform’s usability,” Fabio Araújo, Coordinator of the Drex Initiative and Consultant of the Department of Banking Operations and Payment System at Brazil’s Central Bank, explained.
The projects span various sectors, including international trade financing, real estate transactions, and credit secured by public securities. Major financial institutions like Bradesco, Itaú, and Santander are part of the consortium leading the development of DREX, which emphasizes both privacy and regulatory compliance.
Read more: What Is Fiat Currency? How Does It Differ From Cryptocurrency?
Brazil’s commitment to developing a CBDC aligns with its broader aim of modernizing its financial infrastructure. The country plans to introduce more sophisticated digital solutions by mid-2025.
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