Blockchain adoption in Latin America faces significant challenges, from technical scalability issues to regulatory and trust barriers.

Challenges and Opportunities of Blockchain Adoption in Latin America

In the financial landscape of Latin America, legacy remittance systems like ACH and SWIFT persist, with their antiquated infrastructure contrasting the emergence of decentralized and centralized alternatives that offer cutting-edge technology. While these new platforms streamline transactions, they face obstacles in the final stage of the process, impacting the economic viability of the peer-to-peer (P2P) model.

Currently, the region experiences significant challenges in terms of scalability, as the transaction processing capacity per minute is limited. Ethereum, for example, is forced to resort to techniques such as sharding and batching to maintain operational flow, given its limit of 30 transactions per second. Additionally, fees associated with these transactions are highly variable, depending on network congestion, and can reach exorbitant levels. For this reason, there is a growing trend towards migration to alternative networks, such as the Tron network. However, the need for a decentralized and robust solution persists, as even these alternatives face congestion issues.

Critical factors for blockchain adoption in Latam.

In the emerging markets of the region, approximately 50% of the population faces limited accessibility to financial, banking, and credit services, while the other half is affected by high costs. One of the critical factors influencing this situation is the lack of trust and security offered by blockchain companies and platforms, largely stemming from the absence of regulatory structures and strong alliances with traditional financial systems. Although the demand for access to financial and banking services is evident, the lack of state regulation and the negative perception of these companies undermine their credibility and limit their growth.

Blockchain adoption in Latin America faces significant challenges, from technical scalability issues to regulatory and trust barriers. However, the pursuit of innovative solutions and collaboration with regulatory entities can pave the way for a more successful and sustainable implementation.

Table of Contents

Share in your social networks
Comparte en RRSS
Disclaimer for the Reader
Twitter
LinkedIn
Telegram
Facebook
WhatsApp

Other recommended articles

Marketing does not buy audited results in blockchain companies
Marketing does not buy audited results in blockchain companies

Marketing is a fundamental piece in the strategy of blockchain companies, including those that operate in the world of Blockchain...

by Kii Editorial20/02/2024
Challenges and Opportunities of Blockchain Adoption in Latin America
Challenges and Opportunities of Blockchain Adoption in Latin America

In the financial landscape of Latin America, legacy remittance systems like ACH and SWIFT persist, with their antiquated infrastructure contrasting...

by Kii Editorial11/01/2024
Bitcoin ETFs (Exchange Traded Fund)
Bitcoin ETFs (Exchange Traded Fund)

What is Bitcoin ETFs and why is it at the top of Google searches these days in 2024? If this...

by Kii Editorial10/01/2024
Halving 2024: Impact on Bitcoin and Opportunities in the Crypto Market
Halving 2024: Impact on Bitcoin and Opportunities in the Crypto Market

El Halving de Bitcoin es un fenómeno único en el ecosistema de las criptomonedas. Copy in piece: Halving 2024: Impact...

by Kii Editorial16/02/2024
KiiChain the evolution of the Blockchain
KiiChain the evolution of the Blockchain

The evolution of blockchain networks since their birth and subsequent positioning in the technological world has been interesting and have...

by Kii Editorial15/04/2024
KIIEX, the Colombian exchange that will generate a seismic movement in Latin American finances
KIIEX, the Colombian exchange that will generate a seismic movement in Latin American finances

An analysis of the interview given by the CEO of Kii Global to EL Espectador, a Colombian media outlet. In...

by Kii Editorial25/11/2023
The Future of Decentralized Finance: Adoption vs. Solutions.
The Future of Decentralized Finance: Adoption vs. Solutions.

Adoption vs. platforms Amidst the steady growth of decentralized finance platforms and services, and at a time when attention is...

by Kii Editorial04/04/2024