Latin America and the Caribbean region have lost the big opportunity to succeed economically and improve industrial activities. When the reasons for this downfall were analyzed by a team of experts, it was found that poor public policy choices, coupled with other government interventions, were the main reason. However, the region now has an excellent opportunity to undo the damage by adopting blockchain technology. There can be no better time than this to use this wonderful technology to sustain the economy and grow in all directions.
What happened in the past?
Several Latin American countries were against multilateral trade agreements with the US and even resisted joining the World Trade Organization. They feared that foreign competition would curb the local economy and waited too long to open up towards the global economy. The protectionism that was behind the move has ensured that the region did not progress quickly to match up to other countries. If only they had regularized trades with the rest of the world in an open manner, they could have attracted trillions of dollars of investment into various sectors.
How can the Blockchain change the fate of Latin America?
As the decentralization of the financial sector can bring in more investments and transparency into the system, many experts believe that this will be able to change the landscape of this region. The inefficient system of corrupt intermediaries can be set aside, and decentralized systems can be adapted to sustain the economy in the long run.
Experts who have analyzed blockchain technology believe that Latin America will be a tough challenge, and many financial patchworks are needed to open the economy. This can be used to move money in an easy and effective manner with a lot of transparency. Apart from that, the registration of land titles can also be done using blockchain technology. In this way, the paper documents will be discarded, and the entire system will become transparent. It becomes easy to do background verification for real estate deals, attracting lots of investment into the sector.
Blockchain technology will be useful for both the private and public sectors in this region. The Bahamas has taken the first step in this regard and adopted blockchain technology to deploy a central bank digital currency called Sand Dollar. This is the first country in the world to do so, and it has shown how Blockchain can be used effectively to transform the economy practically.