There are two primary reasons for Latin Americans to adopt cryptocurrency: first, cryptocurrencies offer an alternative socioeconomicogical path that is unknown in the region, and second, it can provide economic empowerment.
The “Crypto Education Can Offer Financial Empowerment To Latin Americans” is a blog post that discusses the benefits of crypto education. The author argues that crypto is the future and it can offer financial empowerment to people in Latin America. Read more in detail here: is crypto the future.
If done correctly, crypto education might be a key component in promoting financial empowerment and fostering widespread acceptance throughout Latin America. In October of last year, it was estimated that Latin America had approximately 15% of the worldwide quantity of Bitcoin in circulation.
Nonetheless, according to a recent survey published by Crypto Literacy, 99 percent of Mexican and Brazilian respondents failed a basic crypto literacy exam. Crypto adoption is now well underway in the area; in fact, it is on the increase; but, many people still lack a fundamental grasp of its use cases and underlying technology.
When the absence of fundamental crypto literacy is evaluated in the context of Latin America’s growing economies, where blockchain technologies have real-world applications, it becomes a severe problem.
People in Latin America who aren’t crypto-literate risk losing out on stablecoins, which may safeguard them from the region’s rapidly rising inflation. Similarly, decentralized apps (dApps) provide unbanked individuals with access to financial services through their mobile devices.
Cryptocurrencies provide a faster and less expensive way to move money across borders in countries where remittances are a substantial source of revenue. So, how can Latin America’s most marginalized people get access to life-changing technology? Education.
Education as a Key to Mainstream Adoption
Trust, Financial Intelligence, and safety are three fundamental barriers to mainstream crypto acceptance that education has the capacity to overcome.
Financial Intelligence
Financial Intelligence, or lack of it, does not stand only as a barrier to cryptocurrency adoption. It mainly stands as a barrier to traditional bank adoption too. Across Latin America and the Caribbean, almost 50% of the population is unbanked according to the data published in August 2021. They lack access to a bank account or different other financial services.
Apart from living far away from relevant financial institutions, the majority of individuals claim a lack of faith in institutions as another reason for not having a bank account. When there is a lack of trust, it is usually due to a lack of understanding.
Trust
In Mexico, it is typical to hear a variety of anecdotes about parents advising their adult children to convert their savings for US dollars and store them in a safe rather than entrusting their profits to a banking institution.
By boosting Financial Intelligence around widespread financial concepts and more concentrated blockchain-related concepts, it is possible to inspire greater trust in financial institutions as a major pillar for promoting some form of mainstream adoption.
Safety
Education inspires a greater level of confidence than financial entities. It’s about trusting oneself to make the proper judgments: individuals who don’t comprehend the institutions and instruments with which they engage are more likely to make unsafe financial decisions, and they’re well aware of this.
Education may operate as a safety net by educating individuals which regulations are in place to protect them and which ones aren’t, so they can comprehend how financial services fit into these regulatory frameworks.
Teach Where It Really Matters
Cryptocurrency has the potential to revolutionize the world, and those who understand it well will have a significant edge. Knowing the importance of education, the crypto business must carefully target audiences and prospective consumers in order to perpetuate the previously ingrained disparities. Remote and underprivileged regions, as well as those with limited access to conventional education, should be among the first to benefit from blockchain education.
We must develop diverse mobile-friendly options in distant regions so that individuals may access learning materials from their mobile devices without having to drive miles to the closest town or metropolis.
Multimedia instructional tools may assist persons with less education get around the requirement for literacy without having to presume a high degree of background knowledge. Mentorship programs and role models for women are critical in creating a welcoming and inclusive environment that is specifically meant to draw more women into the crypto realm.
To ensure that education reaches the greatest possible audience, it is recommended that materials be created in local languages for global audiences. For Latin America, Portuguese and Spanish are ideal. We must avoid erecting financial obstacles to education for everyone engaged, relying in the long-term advantage of building user bases through free and accessible education.
Cryptocurrencies and blockchain technology were created to disrupt established financial power systems. They have the potential to significantly increase financial inclusion and freedom in Latin America. As a result, it’s not surprising that crypto adoption is on the increase right now.
With the widespread acceptance of new technologies, a new danger of leaving the most vulnerable people behind has emerged. Nonetheless, education has the potential to resolve all of these issues. Education may help individuals gain confidence in quickly evolving technology by instilling knowledge that allows them to engage properly with new technologies. In addition, education has the potential to interrupt the vicious cycle of financial exclusion.
