The post Ripple (XRP): Latin America Shifts Towards Crypto Amidst Cash Ditch appeared on BitcoinEthereumNews.com.

Latin America’s Embrace of Crypto Latin America is seeing a significant shift towards digital payments, with the adoption of crypto assets being driven by continued comfort with online experiences post-COVID and unsettling inflationary issues in parts of the region, according to Ripple (XRP) insights. While consumer enthusiasm for cryptocurrency is high, its mainstream acceptance is yet to be achieved. For the first time in history, cash no longer represents the majority of payment preferences in Latin America. Today, only 36% of consumer transactions are cash-based, and the shift toward digital payments is rapidly gaining momentum. As per global surveys, Latin Americans are more likely than their global peers to feel comfortable without physical wallets and are the most likely to believe mobile wallets will fully replace cash within the next decade. Interoperability and Crypto Adoption Despite the region’s enthusiasm for digital currencies, Latin America suffers from a fragmented payments landscape, resulting in low interoperability and high fees for both payment senders and receivers. Regulators are working to enable real-time payment options that improve interoperability, increase financial inclusion, and protect economies from global market volatility. However, the advancement and adoption of these payment systems vary across countries. Key Latin American markets, including Brazil, Argentina, Colombia, and Ecuador, are showing interest in digital asset adoption, particularly Central Bank Digital Currencies (CBDCs). Through CBDCs, these governments aim to protect against uncertain domestic macroeconomic conditions, circumvent capital controls, improve financial inclusion, and enable faster and cheaper payments. The adoption of digital assets also opens opportunities for the crypto and blockchain sectors to build payments systems that enable low-cost, faster, and seamless transactions. The Role of Blockchain in Payments Travelex Bank, the first specialized exchange bank to be approved by the Central Bank of Brazil, serves as a pioneer financial institution in Latin America using…

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Filed under: News - @ May 19, 2024 10:08 am