Difficult times are lived around the world due to 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, Latin America being one of the regions that will face the worst consequences due to the pandemic. Therefore, it is important to know how Bitcoin can be a solution for Latin America compared to COVID-19.
Latin America versus COVID-19
In the entire world, practically no region has been hit by COVID-19 with the same force as Latin America. Although Europe was the epicenter of infections during the months of March and April, and at this time the majority of 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 suffers the economic effects of the crisis.
And it is that, for a good percentage of the population in Latin America, telework is impossible. Either because they are informal traders whose income is enough 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 the quarantine, increasing infections and deepening crises.
And the effects are even worse in terms of sending remittances. Well, in Latin America there are millions of families who depend on the sending of remittances by relatives abroad for their subsistence. Being an important part of the economy in countries like Honduras, Venezuela or Cuba. However, since the COVID-19 crisis began, the volume of remittances sent to the region has fallen by 19.3% from the $ 96 billion it reached in 2019.
Bitcoin as a solution
This drop in remittances sent to Latin American countries has a lot to do both with the economic crisis affecting the region and with the limited availability of services for sending remittances during the pandemic. Well, if sending money was already complicated before COVID-19, due to high commissions and long waiting times, the disease has only worsened the situation.
What, despite the tragic consequences it has for the population of Latin America, is the perfect opportunity for cryptocurrencies like Bitcoin to demonstrate their capabilities. Since, unlike traditional remittance transfers, there is no requirement to transfer BTC between different countries. Only an additional commission is paid or an extra time period is expected.
Better yet, thanks to services for the sale and purchase of fiat money in exchange for cryptocurrencies, such as Binance P2P. It is possible for a person in any country in Latin America to exchange their 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 change the BTC for fiat again.
With this, the possibilities that are opened with Bitcoin are clear. And that in the midst of the COVID-19 pandemic, they can help millions of people throughout the region. Establishing a link without intermediaries between them and their relatives abroad.