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- The Latin American market has remained receptive to the crypto market amid the global mainstream of digital assets led by El Salvador.
- The South American continent is beloved to have more than 33 million people directly invested in the crypto market.
The mainstream adoption of blockchain technology and the cryptocurrency industry has undeniably helped distribute global wealth to formerly marginalized people. For decades, the South American continent has been ravaged by poverty whereas its immediate neighbor, the United States, continues to control the global monetary system through its dollar as a reserve currency.
However, Latin American leaders have significantly shifted their focus from intense corruption to growing their respective economies to compete on a global scale. Moreover, the emergence of blockchain technology and artificial intelligence (AI) has significantly helped Latin American nations beat their high inflation and prevent a lot of disputes.
Polygon Network at the Helm of Latin American Financial Transformation
The Polygon (MATIC) network, a leading Ethereum-based layer two (L2) scaling solution with about $893 million in total value locked (TVL) and $1.25 billion in stablecoins market cap, has played a significant role in digitizing the Latin American nations mostly from hyperinflation.
The $6.8 billion valued blockchain network is home to several DeFi projects originally founded in the Latin American market. For instance, Ripio helped launch LaChain, a Latin America–focused Layer 1, built using the Polygon Supernets.
Earlier this month, the Ripio protocol announced the launch of UXD, a new dollar-pegged stablecoin, available to LaChain users in Argentina and Brazil. Interestingly, Ripio’s UXD and Tether are used by the local government of Buenos Aires to facilitate tax returns.
In a bid to ensure future growth prospects, Ripio Portal, Ripio Wallet, and Ripio Trade have embarked on a journey to join the Polygon ecosystem and use the in-house protocols to build a scalable B2B blockchain ecosystem.
Another emerging Web3 protocol in Latin American markets that seeks to scale through the Polygon network is Lemon Cash, a crypto wallet platform with more than 1.8 million users. Founded in 2019, Lemon Cash has already partnered with Visa to enable seamless on-ramp and off-ramp digital assets and fiat currency in Argentina.
Another notable financial project in South America using the Polygon network is Nubank and its Nucoin token to incentive engagement from its 70 million users. Earlier this year, Brazil-based BTG Pactual, one of Latin America’s biggest investment banks, launched its stablecoin on the Polygon network. Lastly, Polygon Labs sponsored Blu3 DAO during EthMexico last year and offered support and mentorship for 25 women attending the conference.
Market Outlook and Price Action
The Polygon network, although mentioned by the United States SEC as one of the digital assets that have violated the securities law, has grown to a mature layer-two scaling solution in the Ethereum ecosystem. According to the latest crypto price oracles, MATIC exchanged around 68 cents on Thursday, down approximately 18 percent YTD.
