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Colombian Crypto Market Advances, but Users Demand Greater Security -Breaking

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The Colombian crypto market is growing, but users demand greater security
  • If they were guaranteed greater security from theft and fraud, cryptocurrencies would attract a little over a third Colombians.
  • It is possible that the growth of Colombia’s cryptocurrency market could be related to their use for drug trafficking by Mexican cartels.
  • Around 70% of respondents would pay using cryptocurrency to purchase online.

The cryptocurrency market is growing in Colombia and people are increasingly interested in digital currency as a payment method. Two thirds of Colombians now want more security in their investments.

According to CoinsPaid’s recent survey, 65.4% would be willing to use digital money for their business.

But, it is possible to increase that number if both the government and businesses in this sector provided a greater level of security to transactions by users. This includes preventing theft, fraud, and other crimes.

Colombia, ranks among the top three Latin American countries in terms of the use of cryptocurrencies, alongside Venezuela and Argentina, according to the Chainalysis‘ 2021 ‘Global Cryptocurrency Adoption Index‘.

“Up to 35.8% of the participants in the survey would be willing to buy with cryptocurrencies if the country’s scenario guaranteed greater confidence,” the report revealed, as quoted by newspaper La República.
“Respondents prioritize the aspect of regulation and information about promotions, discounts and exclusive services that businesses that accept cryptocurrencies could offer,” the study added.
These data confirm the rapid growth of cryptocurrency markets in South America, ranking 11th globally among digital currency users.

Colombia has the highest number of ATMs throughout Latin America. Venezuelan migrants sending remittances to their loved ones to Venezuela have largely fueled the growth of the local market for cryptocurrency.

Headlines on Drug Trafficking

It is a well-kept fact that large amounts of cryptocurrency are used by Mexican drug cartels in order to purchase Colombian cocaine. A significant amount of cryptocurrencies that are available on Colombia’s market is thought to be related to drug trafficking.

According to UNODC’s report, Venezuela, Central America and the Caribbean were used for decades by drug cartels as a route to traffic drugs from Colombia, Peru and Bolivia to the United States and Europe.

Cucuta (or Arauca) is the Colombian border town where drug trafficking activities are concentrated. Informed sources have revealed that Mexican cartels send “executives” from time to time to exchange cocaine for cryptocurrencies.

“The Sinaloa Cartel and the Gulf Cartel are the buyers of the cocaine grown in Colombia, Peru and the Bolivian jungle. It travels by land from Ecuador to Venezuela. From there, the cartels send the shipments on planes to Mexico, Honduras, Nicaragua or Guatemala”, affirms the professor of National Security at the National Autonomous University of Mexico (UNAM), Raúl Benítez.

Crypto Adoption: A Growing Trend

According to Rafael Brunacci (business development manager at CoinsPaid Latin America), “Purchases of cryptocurrencies such as Bitcoin naturally increase when their value is stable.”
Brunacci further projects that “between December 2020 and January 2022, cryptocurrency transactions will reach U.S. $1.8 trillion, which is a huge amount for retail activity, and illustrates the importance of businesses accepting digital currency payments.”
The study found that almost three quarters of Colombians are open to using cryptocurrencies for online shopping, while 31.2% of them would consider buying electronics such as smartphones and computers with digital assets.

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