It’s no secret Latin America’s economy is not in great shape compared to other regions.
There isn’t any single reason for this. You could point to a dependence on commodity exports and its booms and bust cycles, government corruption, income inequality or a combination of them all.
The events of 2020 are likely to take a particular toll on the people of Latin America (LatAm). The OECD has the region has less “fiscal space” to navigate the economic impacts of the pandemic than it did before the last crisis in 2008.
However, I believe the tide is shifting. With the current trends linking connectivity, digital payments, fintech investment and decentralized finance (DeFi), it seems realistic that in the next 10 years and DeFi dapps can provide Latin America with the means to leapfrog into a highly interconnected and efficient regional economy.
Unlike the European model that was built from the top down, this financial ecosystem is emerging from the grassroots. This trend is manifesting already in the case of Mexico that at moments had settled over cryptocurrencies and by the Venezuelan families abroad sending money home with bitcoin. Much like mobile phones disrupted the African economy, this new financial infrastructure has the potential to open up new markets, giving birth to a new, decentralized, peer-to-peer economy.
Within a decade I envision Latin America having a regional economy built from the ground up. An economy that can stand apart from oppressive government-driven fiscal policies – a true peer-to-peer system, driven by the people – and based on blockchain technology.
The relevance of technology adoption for the region is already manifesting. Currently, LatAm is in smartphone app usage, and network infrastructure is expanding rapidly to match. It’s only a matter of time before examples from the digital gig economy like “” begin to affect local business models for individuals and businesses.