Mastercard and Latin America Crypto Transactions
Mastercard: Latin America Continues to See Surge in Crypto Transactions
Latin America has seen a dramatic rise in cryptocurrency transactions, with Mastercard reporting that operations in the region reached $353.8 billion between June 2020 and June 2021, accounting for 9% of global transactions. Despite the volatile nature of digital currencies, 7 out of 10 Latin Americans invest in cryptocurrencies, with many seeking a hedge against high inflation rates in their countries. According to Mastercard, bank cards account for 33.8% of crypto purchases, while 34% of Latin American users access cryptocurrencies through digital wallets on reliable platforms. The company is seeking to build trust and create alliances with regulated and authorized cryptocurrency custodians, while also venturing into Web 3.0.
High Inflation Rates Drive Latin American Crypto Adoption
In recent years, the world of finance has seen the emergence of cryptocurrencies as an alternative to traditional payment methods. While some regions have been slow to adopt digital currencies, Latin America has seen a significant uptick in crypto transactions, with Mastercard reporting that operations in the region accounted for 9% of global transactions between June 2020 and June 2021.
According to Mastercard's report, 7 out of 10 Latin Americans invest in cryptocurrencies, despite their volatile nature and fluctuations in price. This high adoption rate is likely driven by the persistent high inflation rate in several countries in the region, as cryptocurrencies can serve as a hedge against inflation.
Crypto Transactions Increasingly Driven by Bank Cards and Digital Wallets
In terms of how people are converting their cryptocurrencies to traditional currencies, the report reveals that bank cards account for 33.8% of crypto purchases, while 34% of Latin American users access cryptocurrencies through digital wallets on reliable platforms.
Mastercard Seeks to Build Trust and Venture into Web 3.0
Mastercard sees great potential in the ability of cryptocurrencies to change payment routines, but also recognizes the need to build trust and create alliances with regulated and authorized cryptocurrency custodians. By partnering with financial entities, Mastercard aims to offer a set of purchase, retention, and sale services for selected crypto assets, all with verified identity, cybersecurity, and advice.
Furthermore, Mastercard is also looking to venture into Web 3.0, believing in the power of technology to build a future that includes everyone in the world of web 3. The company is focused on elements such as commercial growth, leadership, education, legal and regulatory defense, and entrepreneurial spirit.
Conclusion
In conclusion, the rise of cryptocurrencies in Latin America has been remarkable, with Mastercard reporting significant growth in the region's crypto transactions. As more people turn to digital currencies, it will be interesting to see how companies like Mastercard continue to evolve to meet the needs of this changing landscape. At Matwal Solutions, we follow the strictest legality of the jurisdictions where we operate and are always available to help clients navigate the complex world of cryptocurrencies and other financial services.