Times are hard all over the world because of the pandemic generated by COVID-19. leading to what is already the worst economic crisis since the Great Depression of 1929. However, not all continents will be impacted in the same way, with Latin America being one of the regions that will face the worst consequences of the pandemic. Therefore, it is important to know how Bitcoin can be a solution for Latin America in the face of COVID-19.
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Latin America versus COVID-19
Worldwide, virtually no region has been hit by the COVID-19 with the same force as Latin America. Although Europe was the epicenter of the contagion during the months of March and April, and at this moment most of the cases are in the United States. These countries have health systems and economic capacities far superior to those of Latin America.
Thus, while in Europe they were able to flatten the curve in a matter of weeks, in Latin America we are just entering the worst phase of the pandemic. With cases increasing across the continent, while a population largely dependent on informal work and remittances is suffering the economic effects of the crisis.
For a good percentage of the population in Latin America, teleworking is impossible. Either because they are informal traders whose income is sufficient just to keep up. Or because they do not have the connectivity services to stay at home and generate income from there. Millions of people have had to keep working despite quarantine, increasing contagion and deepening crises.
And the effects are even worse in terms of sending remittances. In Latin America, millions of families depend on remittances from relatives abroad for their livelihoods. They are an important part of the economy in countries like Honduras, Venezuela or Cuba. However, since the beginning of the COVID-19 crisis, the volume of remittances sent to the region has fallen by 19.3% from the $96 billion it reached in 2019.
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Bitcoin as a solution
This drop in remittances sent to Latin American countries has much to do with both the economic crisis affecting the region and the limited availability of remittance services during the pandemic. For, if sending money was already complicated before COVID-19, due to high commissions and long waiting times, the disease has only made the situation worse.
Which, despite the tragic consequences it has for the population of Latin America, is the perfect opportunity for cryptosystems like Bitcoin to demonstrate their capabilities. Because, unlike traditional remittance transfers, no requirements are needed to transfer BTCs between different countries. You just pay some additional commission or wait for a period of extra time.
Even better, thanks to services for buying and selling fiat money in exchange for cryptosystems, such as Binance P2P. It is possible for a person in any Latin American country to exchange his Bitcoins for fiat money quickly, safely and cheaply.
So, those who want to transfer money to their relatives in any Latin American country, would only have to buy the Bitcoins they want to send with fiat money, transfer them, and within the same platform their relatives will exchange the BTC for fiat again.
With this, the possibilities that are opened with Bitcoin become clear. And that in the midst of the COVID-19 pandemic, they can help millions of people throughout the region. By establishing a seamless link between them and their families abroad.