Latin America continues to demonstrate that the adoption of Bitcoin and cryptocurrencies is unstoppable. On the one hand, Argentina is preparing for positive regulation for cryptocurrencies, and its largest private bank embraces the technology. Meanwhile, El Salvador continues to show good results for its decision to make Bitcoin a legal currency in the country.
Bitcoin and Blockchain Adoption
📍Banco Galicia, the largest private bank in Argentina will allow its users to trade with bitcoins and other cryptocurrencies. The bank's executives announced the measure that will allow its clients to freely transact with cryptocurrencies in its app. Another sign that the adoption of Bitcoin continues to add efforts worldwide.
This decision made by the executives of Banco Galicia coincides with a difficult economic moment in Argentina. The country now has an inflation index that places it as the seventh country with the highest inflation in the world (50,9% year-on-year). This also contrasts with the clear intention of the Argentine government to open more friendly spaces towards cryptocurrencies. A situation that will lead to the diversification of the cryptocurrency market in this country.
📍El Salvador continues to show strong signs in its Bitcoin adoption. A recent CBER report shows the strong evolution of Chivo in the country. This Bitcoin custodian and exchange service provider is widely recognized by Salvadoran society (with 68% recognition).
Likewise, the study indicates that the majority of the population that has downloaded the application (60,66%) is still using it. Among these uses are receiving and making payments in BTC or USD (48%) or receiving international remittances from family members (11%). The population also declares that they use it for savings, where 20% of those who received the "BTC airdrop" of $30 from the Salvadoran government have HODLed their holdings and another 40% express having purchased BTC for the wallet. .
For their part, about 20% of the country's companies have joined the use of the application to receive payments in USD and BTC. All of this with an impact on sales of about 29%, without affecting the price or its supply chain of its products.
Thus, El Salvador becomes one of the clearest examples that a country can adopt Bitcoin as a legal currency. All of this without negatively affecting the country, but on the contrary, opportunities for financial inclusion and economic freedom are amplified.
DeFi and GameFi
📍GameFi continues to make its way rapidly among traditional video games. That's what the new report shows «The evolution of blockchain games» by DappRadar. In it, it is made clear that the popularity of Play2Earn (P2E) games has led the sector to surpass DeFi, in terms of active dApp wallets. From 2018 to the present, this sector has grown 35,37% and its capitalization has reached 7 billion dollars. This is despite the resistance it has received from traditional game studios and a negative media campaign.
However, researchers reflect that there are many spaces to continue gaining ground. In the report they indicate that greater knowledge about Proof of Stake (PoS) technology could give a new vision to players and studios. Additionally, the possibility of strong ownership of in-game assets through NFTs could see GameFi fit into the traditional world in the long run. Not only that, the generation of new organizational structures for players (guilds) could continue to drive the development of P2E and GameFi.
Another aspect analyzed in the report is how the interaction between DeFi, NFT and the metaverse can catalyze the growth of GameFi. All this combined with the growing interoperability, decentralization and democratization of blockchain games. Thanks to these elements and the cooperation of these technologies, GameFi promises a future of great expectations and great developments.
📍On the other hand, Terra has decided that its flagship protocol, Anchor Protocol, will reduce its annual return rates, this with the aim of improving the sustainability of the platform. The measure is due to the implementation of dynamic interests on the platform, approved by the users of this platform in the month of March.
The implementation of this measure in Anchor Protocol has caused the platform's annual profitability to be reduced by 2% on investments. From a profitability of 20% that was offered before the application of the measure, it has gone to a profitability of 18% annually.
Meanwhile Anchor's total value locked (TVL) was not affected by the profitability cut. But something very different happened to ANC, the platform's governance token. It plummeted up to 15% in response to the action implemented, to be around 1,65 euros.
Rules and Regulations
📍The issue of cryptocurrency regulation continues to be the subject of much debate in high government positions in the United States and the European Union. In this sense, Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union of the EU European Commission, has called for joint global coordination on cryptocurrency regulation.
According to statements by Commissioner McGuinness, the European Union and the United States could help lead a global regulatory approach. This is in order to encourage the use of cryptocurrencies considering their significant benefits and risks.
The commissioner pointed out the volatility of some assets and the impact of this situation on the markets. She also highlighted the possibility of Russia using these assets as a means of evading applied sanctions, among other risks.
Likewise, I indicate that the safe use of cryptocurrencies is only possible under a global regulatory model. Especially, in a framework where supervisors are in permanent communication. He also highlighted the need for agreements that lean towards the protection of minor investors, the protection of the environment and its resources.
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