Throughout the 20th century, the entire region of South America appeared to keep a marginalized place in the race of development. Unlike the volatile regions of the African continent and the Middle East, the Latin America was not plagued by armed conflicts, political instability, and economic ruin, even though it had its bloody share of spillover wars of the West-USSR global struggle.
But, unlike many other countries that were struggling with the development of their nation-building process, the countries of Latin America had a somewhat more stable outlook.
But, at the same time, the developed world, mainly the US and the European nations, still perceived South America as a place where raw resources are acquired, but not much more. The beginning years of the 21st century brought about very little change in this regard. While many today see the late 20th century as a period when Asia began its rebirth, the same cannot be said for the region of Latin America, at least, when it comes to global perceptions.
In spite of this, the continent harbors a huge potential and this is nowhere more apparent than in its largest nation, the Federative Republic of Brazil. Here, in the land of the mighty Amazon River, new decentralized technologies like BitCoin have the potential to provide the country with a covert, but still exceedingly powerful entrance to the global financial domain.
The Perception of Brazil in the Western World
Like many other nations in the region, Brazil has a positive image when it comes to its culture and sports. The land of football, carnival and beautiful beach bodies, Brazil became synonymous with distinctive music, Capoeira, street parties and a stunning nature that provided it with lush amazon forests, stunning beaches, and many more wondrous locations.
But, when the economic nature of Brazil is put under scrutiny, the first thing that comes to mind for many outsiders is a favela shantytown and rampant urban poverty. The same image is projected in popular culture and gradually became a stereotype. However, the way Brazil approached the world, both in the past and in contemporary times is actually full of surprises. For example, most people all over the globe believe the Brazil was neutral during the WW2, like many of its neighbors.
The truth is that the country declared war to Nazi Germany in 1942 and its expeditionary forces fought a land campaign in Italy, where almost a 1000 Brazil soldiers lost their lives. This is only one example of this fascinating country and its role in the global events. Currently, the country is an active participant in the UN, providing more than $300 million to the World Food Program, which puts it in the same range as China and India, both of whom have substantially bigger economies.
Because of all of this, Brazil was and continues to be an important, even though not the obvious player on the world stage. But, its development markers are still lagging behind other globally relevant nations.
BitCoin could change that equation by giving the economic power directly to the people.
The BitCoin Injection for the Country
While Brazil is a lot more relevant on the global stage than most people outside of it realize, the fact remains that it is still coping with several exceedingly difficult areas when it comes to its economy. The country boasts a huge collection of small businesses, but at the same time, it is plagued by rampant corruption and mismanagement on the local and federal level.
These two often hamper any possibility of allowing a small business to grow and develop naturally, using its own capacity. Instead, dealing with these problems usually takes up a lot of time and energy, forcing the same businesses to provide a huge effort just to stay afloat. But, with BitCoin, the monetary potential is taken away from the traditional financial domain and provided directly to the people.
With it, the citizens of Brazil can maneuver around problematic issues like the large and ineffective bureaucratic systems both in national and private sectors. Recently, it became known that Bitbond, BitLendingClub, and BTCJam, services which operate in the BitCoin lending sector, are all looking for a way into the Brazilian market.
These services utilize a hybrid combination of crowdfunding and loan services that perfectly blend with the BitCoin system. With any of these, a person with a business idea in Brazil could apply for a loan and get it in BTC, completely avoiding the traps and pitfalls of the traditional banking sector. At the same time, the BitCoin loan can be a lot quicker and provided on much better terms.
The possibilities do not end here. Brazil’s 200 million-strong population is young, educated and equipped with a broad cultural outlook. This mix allows it to be active and competitive on the global market with BitCoin as the ideal form of payment. Here, young people in Brazil can become engaged in the E-Sports or some other emerging activity that is mostly reserved for the young and tech-friendly population of the planet.
In the heart of all of these endeavors, BitCoin can be the key galvanizing factor.
The Road Ahead
The country’s political and legislative systems, similar to many other developing nations, are keeping an open mind about BitCoin. During the last quarter of 2015, the country began a discussion in the highest echelons of power about the possibility of recognizing BitCoin as a currency. Taking place in the House of Representatives, these talks showcase a willingness to give the cryptocurrency a try, even if no precise deal came out of it so far.
Similar discussions will continue while startups and companies that are already active in the developed BitCoin markets, where things like using BTC to bet online are a regular occurrence, keep on pushing into the country. The legal regulation might come at a slower pace, but it appears that the needs of the population will merge with the drive of BitCoin service providers to expand their user base. If the same is executed in the right manner, this alignment of interests has the potential to be a winning scenario for all involved.
The political powers of Brazil might still be on the fence about BitCoin, but it is clear that the population will most likely jump at the opportunity to better their financial possibilities in a way that circumvents the regular local problems.