When the people find themselves bankless, blockchain steps in.
This article was written by Sergey Ponomarev, CEO of SONM.
A recent United Nations report found that Blockchain — the technology that underpins digital currencies like Bitcoin — could improve security and cut costs in banks in Latin America.
The blockchain is particularly useful in financial transactions because it creates an immutable, public record that verifies the legitimacy of exchanges. As a result, virtual payment methods are able to withstand economic turmoil, providing a more stable store of value while ensuring that transactions and savings are secure.
Investing in digital currencies, like bitcoin, is increasingly being seen as a viable alternative to the traditional banking system, offering higher levels of stability and profitability than fiat currencies. When traditional fiat currencies suffer from high inflation, the exchange rates for digital counterparts, have skyrocketed, multiplying the returns of their investors. For instance, since the start of 2017, the bitcoin exchange rate has doubled, while Ethereum’s rate has grown six times over just the last three months.
Digital currencies have become extremely prevalent in South American countries that suffer from high inflation. In Venezuela in particular, the bolivar inflated by 450% last year and experts predict that it will continue to plummet in value as the country prints more and more money. Meanwhile, the currency’s devaluation renders basic necessities like groceries unaffordable to most Venezuelans. Digital currencies provide a secure means of exchanging and saving money.
The same principle doesn’t just apply to peer-to-peer monetary exchanges - it also has the potential to shake up the banking industry as a whole. The U.N. report highlights how Caribbean economies in particular are experiencing a phenomenon called de-risking. This refers to the circumstance where banks shun relationships in which the cost of regulatory compliance is viewed as disproportionately high in comparison to returns. De-risking is particularly problematic in developing economies because it has raised the cost of doing business to the point that some banks are abandoning regions like the Caribbean and South America.
Blockchain has emerged as a much-needed solution in these areas where much of the population has suddenly found itself bankless. This technology has key advantages over the current system because it can offer a means to monitor and more easily unearth illegal transactions. It also facilitates international monetary exchanges by eliminating the need for correspondent banks to conduct transactions that originate in a foreign country. In these ways, blockchain would reduce risks and costs — and thus, barriers to entry — for banks in Latin America.
The traditional banking system is on the cusp of major disruption from blockchain technology and digital currencies. Investors eager to save their funds from high inflation and maximize profits now have a tool to do so.
This article was written by Sergey Ponomarev, CEO of SONM.
A recent United Nations report found that Blockchain — the technology that underpins digital currencies like Bitcoin — could improve security and cut costs in banks in Latin America.
The blockchain is particularly useful in financial transactions because it creates an immutable, public record that verifies the legitimacy of exchanges. As a result, virtual payment methods are able to withstand economic turmoil, providing a more stable store of value while ensuring that transactions and savings are secure.
Investing in digital currencies, like bitcoin, is increasingly being seen as a viable alternative to the traditional banking system, offering higher levels of stability and profitability than fiat currencies. When traditional fiat currencies suffer from high inflation, the exchange rates for digital counterparts, have skyrocketed, multiplying the returns of their investors. For instance, since the start of 2017, the bitcoin exchange rate has doubled, while Ethereum’s rate has grown six times over just the last three months.
Digital currencies have become extremely prevalent in South American countries that suffer from high inflation. In Venezuela in particular, the bolivar inflated by 450% last year and experts predict that it will continue to plummet in value as the country prints more and more money. Meanwhile, the currency’s devaluation renders basic necessities like groceries unaffordable to most Venezuelans. Digital currencies provide a secure means of exchanging and saving money.
The same principle doesn’t just apply to peer-to-peer monetary exchanges - it also has the potential to shake up the banking industry as a whole. The U.N. report highlights how Caribbean economies in particular are experiencing a phenomenon called de-risking. This refers to the circumstance where banks shun relationships in which the cost of regulatory compliance is viewed as disproportionately high in comparison to returns. De-risking is particularly problematic in developing economies because it has raised the cost of doing business to the point that some banks are abandoning regions like the Caribbean and South America.
Blockchain has emerged as a much-needed solution in these areas where much of the population has suddenly found itself bankless. This technology has key advantages over the current system because it can offer a means to monitor and more easily unearth illegal transactions. It also facilitates international monetary exchanges by eliminating the need for correspondent banks to conduct transactions that originate in a foreign country. In these ways, blockchain would reduce risks and costs — and thus, barriers to entry — for banks in Latin America.
The traditional banking system is on the cusp of major disruption from blockchain technology and digital currencies. Investors eager to save their funds from high inflation and maximize profits now have a tool to do so.
Binance Trial on Ice in Nigerian Court as Lawyers Demand Missing Documents
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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