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Blockchain Latin America: crypto as a lifeline for financial survival

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New research reveals that blockchain ecosystems in Latin America are growing as a response to adverse financial situations.

In the dynamic landscape of blockchain technology, Latin America emerges as a pivotal player, capturing the attention of global Web3 observers. The increasing importance of closely monitoring this region’s blockchain ecosystems is underscored by its rapid evolution, presenting unprecedented opportunities and challenges alike.

 

The region is poised to harness the potential of the crypto wave, showing a growing crypto adoption that reflects a burgeoning interest amongst Latin Americans. But, what is behind this increasing blockchain adoption in the region? What motivates Latin Americans to invest in cryptocurrency?

 

A recent survey conducted by Sherlock Communications has arisen to shed some light on this scenario. The Blockchain Report 2024 provides a deep insight into Latin America’s blockchain ecosystems, stepping out from behind the curtain and showing what it is exactly that drives Latin American’s sentiment towards the adoption of this technology.

 

So, what’s brewing in blockchain Latin America? Adoption by necessity. It seems that Latin Americans are turning to crypto to protect their assets from adverse financial situations, such as inflation or high remittances fees.

 

In this article, we’ll take a deeper look into different Latin American countries to better understand how Latin Americans perceive cryptocurrencies and how financial drawbacks are pushing crypto adoption in the region.

Blockchain Latin America: key ally in navigating financial turbulence

The exclusive insights provided by the Blockchain Report 2024 bring to the table an outstanding fact that reveals one of the main factors behind growing crypto adoption across this vast region: Latin Americans are turning to cryptocurrencies as a means of financial survival.

 

Although the specific scenario per country does vary, particularly considering the diverse nature of the region, there is still an outstanding common pattern: adverse financial situations are pushing Latin Americans towards embracing crypto, with or without governmental or regulatory support.

 

This scenario, in turn, is having an impact on local regulatory frameworks and government stance towards blockchain technology, thereby reshaping Latin America’s dynamic and evolving blockchain ecosystems as a consequence of Latin Americans’ push for demands in crypto.

 

To better understand why Latin Americans are choosing crypto more and more and how this impacts on the local blockchain landscape, we’ll explore the scenario across 4 different Latin American countries.

Argentina: raising crypto adoption against inflation

Argentina has surged to become the second-largest crypto market in Latin America, reflecting a growing trend of adoption. In fact, the Blockchain Report 2024 reveals that an estimated 5 million Argentinians actively hold cryptocurrencies.

 

Now, why are Argentinians increasingly turning to cryptocurrencies? Well, it seems this is the population’s response to high inflation and financial instability.

 

This uptake in crypto adoption responds to the prevailing economic challenges faced by the country. With annual inflation soaring to a staggering 211% in 2023, the highest since the early 1990s, Argentinians are increasingly turning to cryptocurrencies, particularly stable coins, as a hedge against depreciation of the Argentinian Peso.

 

The recent election of President Javier Milei has further fueled optimism within the crypto community, as his administration has a friendlier stance towards crypto. Although no specific regulations are being discussed at the moment, Milei has openly declared he welcomes with open arms the legal recognition of Bitcoin and other crypto as means of contract payments in response to growing demands from consumers.

Colombia: crypto as a relief from remittance fees burdens

Colombia positions itself as the fourth-largest adopter of crypto in Latin America. According to the Blockchain Report, over 5.6 million Colombians are actively participating in the crypto market. What’s more, the country shows a remarkable grassroots adoption trend, outracing its regional counterparts.

 

The driving forces behind this surge in crypto adoption are indeed multifaceted, but, once again, economic factors play a prominent role. Except in this case, it’s not only inflation that fosters crypto adoption. It’s remittance fees that take the main stage.

 

The burden of remittance fees has incentivized the adoption of crypto as a cost-effective solution for cross-border transactions. Colombia received a substantial $9.4 billion in remittances in 2022 and, in this context, the possibility of making faster and cheaper money transfers provided by crypto has become increasingly attractive among its population.

 

Colombians’ stance towards crypto adoption are reshaping the blockchain scenario in the country, with the government responding with positive signals such as the potential introduction of a central bank digital currency (called CBDG) or the collaboration with Ripple Labs that explores blockchain’s potential beyond traditional financial realms as part of a plan to rectify land distribution efforts.

Venezuela: the largest figures of stable coin trades amidst financial crisis

Despite facing numerous hurdles, including political instability, Venezuela has emerged as a significant player in the regional crypto arena. In 2023, the country ranked 40th in the Global Crypto Adoption Index, and its grassroots adoption increased not only in spite of but rather because of challenging financial scenarios.

 

Despite initial attempts of centralized cryptocurrency adoption, exemplified by the ill-fated Petro (PTR), Venezuela’s crypto journey took a different trajectory. Government initiatives in this arena were actually never adopted and even became part of controversial corruption scandals.

 

Yet, against all odds, Venezuelans, driven by the pressing need to combat currency devaluation and hyperinflation, managed to grow crypto user adoption out of necessity looking for financial security. According to the Blockchain Report, the total of crypto transactions in the country showed a 32% increase between 2021 and 2023.

 

Similar to Argentina’s case, Venezuelans became strong users of stablecoins because of hyperinflation. This is such that stable coin trades made up 34% of a small retail transaction volume in the country, the largest figure in Latin America – a testament to the population’s innovative approach to financial stability amidst economic volatility.

 

Furthermore, the country’s migration patterns have led to a Venezuelan diaspora scattered across Latin America that is actively becoming a participant in the crypto sector, contributing to the country’s growing influence in the regional blockchain landscape.

Cuba: persistence and education boosting crypto adoption

Amidst Cuba’s challenging political and economic challenges, a burgeoning crypto adoption trend is steadily gaining traction in the country. And, once again, crypto is perceived as a means to protect Cubans from adverse economic situations.

 

Cuba faces a number of challenges. This country showed an annual inflation rate of 45%, and, according to the Cuban Observatory of Human Rights, most of the population lives in situations of extreme poverty, 88% to be more precise.

 

Additionally, the country faces restrictions imposed by the US trade embargo, which results in centralized exchange companies being absent in Cuba. High inflation rates in the country rely on remittances and tourism to access US Dollars. And to this complex scenario, we must add some structural challenges, clearly exemplified by the collapse of crypto mining operations due to frequent blackouts in the country.

 

Yet, despite all these impediments and challenges, the Cuban population persists in leveraging crypto as a safeguard. The crypto revolution has found its way in Cuba by means of pushing and demanding consumers that fiercely call for crypto adoption. In fact, the country was included in 2023 in the Global Crypto Adoption Index, ranking 136th out of 155.

 

To overcome currency restrictions derived from the US embargo, Cubans are engaging in peer-to-peer transactions to get access to crypto. Additionally, the acceptance of crypto payments by an increasing number of businesses reflects a nascent yet growing adoption trend.

 

The crypto revolution in Cuba is primarily driven by its highly educated population. Grassroots educational movements are emerging to disseminate knowledge about Bitcoin and blockchain technology, empowering citizens to navigate financial uncertainties through digital assets.

Blockchain Latin America: where necessity drives opportunity

Latin America’s blockchain landscapes are not merely a reflection of trends, but a response to pressing economic challenges.

 

The recent insights provided by the Blockchain Report 2024 illuminate a crucial reality: crypto adoption in the region is more than just a trend; it’s a lifeline. As countries across Latin America face common challenges such as inflation or economic uncertainty, crypto emerges as a beacon of resilience and innovation, offering a pathway towards financial stability in turbulent times.

 

From Argentina to Cuba, the common thread of necessity driving crypto adoption underscores the profound impact of economic challenges on shaping the region’s blockchain ecosystems.

 

As individuals and businesses navigate inflation, currency devaluation and high remittance fees, the demand for crypto as a means of financial survival continues to surge. Moreover, this demand, as we’ve seen in this article, is further impacting on grassroots movements and government initiatives that are reshaping blockchain ecosystems across the region.

 

Latin America emerges as a key player in the global crypto arena, where necessity not only drives adoption but also unlocks new opportunities for growth and development.

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Arizona voters guarantee the right to abortion in the state constitution

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PHOENIX (AP) — Arizona voters have approved a constitutional amendment guaranteeing abortion access up to fetal viability, typically after 21 weeks — a major win for advocates of the measure in the presidential battleground state who have been seeking to expand access beyond the current 15-week limit.

Arizona was one of nine states with abortion on the ballot. Democrats have centered abortion rights in their campaigns since the U.S. Supreme Court overturned Roe v. Wade in 2022. Abortion-rights supporters prevailed in all seven abortion ballot questions in 2022 and 2023, including in conservative-leaning states.

Arizona for Abortion Access, the coalition leading the state campaign, gathered well over the 383,923 signatures required to put it on the ballot, and the secretary of state’s office verified that enough were valid. The coalition far outpaced the opposition campaign, It Goes Too Far, in fundraising. The opposing campaign argued the measure was too far-reaching and cited its own polling in saying a majority of Arizonans support the 15-week limit. The measure allows post-viability abortions if they are necessary to protect the life or physical or mental health of the mother.

Access to abortion has been a cloudy issue in Arizona. In April, the state Supreme Court cleared the way for the enforcement of a long-dormant 1864 law banning nearly all abortions. The state Legislature swiftly repealed it.

Voters in Arizona are divided on abortion. Maddy Pennell, a junior at Arizona State University, said the possibility of a near-total abortion ban made her “depressed” and strengthened her desire to vote for the abortion ballot measure.

“I feel very strongly about having access to abortion,” she said.

Kyle Lee, an independent Arizona voter, does not support the abortion ballot measure.

“All abortion is pretty much, in my opinion, murder from beginning to end,” Lee said.

The Civil War-era ban also shaped the contours of tight legislative races. State Sen. Shawnna Bolick and state Rep. Matt Gress are among the handful of vulnerable Republican incumbents in competitive districts who crossed party lines to give the repeal vote the final push — a vote that will be tested as both parties vie for control of the narrowly GOP-held state Legislature.

Both of the Phoenix-area lawmakers were rebuked by some of their Republican colleagues for siding with Democrats. Gress made a motion on the House floor to initiate the repeal of the 1864 law. Bolick, explaining her repeal vote to her Senate colleagues, gave a 20-minute floor speech describing her three difficult pregnancies.

While Gress was first elected to his seat in 2022, Bolick is facing voters for the first time. She was appointed by the Maricopa County Board of Supervisors to fill a seat vacancy in 2023. She has not emphasized her role in the repeal vote as she has campaigned, instead playing up traditional conservative issues — one of her signs reads “Bolick Backs the Blue.”

Voters rejected a measure to eliminate retention elections for state Superior Court judges and Supreme Court justices.

The measure was put on the ballot by Republican legislators hoping to protect two conservative justices up for a routine retention vote who favored allowing the Civil War-era ban to be enforced — Shawnna Bolick’s husband, Supreme Court Justice Clint Bolick, and Justice Kathryn Hackett King. Since the measure did not pass, both are still vulnerable to voter ouster, though those races hadn’t been decided by early Wednesday morning.

Under the existing system, voters decide every four to six years whether judges and justices should remain on the bench. The proposed measure would have allowed the judges and justices to stay on the bench without a popular vote unless one is triggered by felony convictions, crimes involving fraud and dishonesty, personal bankruptcy or mortgage foreclosure.

The Canadian Press. All rights reserved.

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Voters back Nebraska’s ban on abortions after 12 weeks of pregnancy and reject a competing measure

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OMAHA, Neb. (AP) — Nebraska voters supported a measure Tuesday that enshrines the state’s current ban on abortions after the 12th week of pregnancy in the state constitution, and they rejected a competing measure that sought to expand abortion rights. Nebraska was the first state to have competing abortion amendments on the same ballot since the U.S. Supreme Court overturned Roe v. Wade in 2022, ending the nationwide right to abortion and allowing states to decide for themselves. The dueling measures were among a record number of petition-initiated measures on Nebraska’s ballot Tuesday.

What were the competing abortion measures?

A majority of voters supported a measure enshrining the state’s current ban on abortion after the first 12 weeks of pregnancy in the state constitution. The measure will also allow for further restrictions. Last year, the Legislature passed the 12-week ban, which includes exceptions for cases of rape and incest and to protect the life of the pregnant woman.

Voters rejected the other abortion measure. If they had passed it by a larger number of “for” votes than the 12-week measure, it would have amended the constitution to guarantee the right to have an abortion until viability — the standard under Roe that is the point at which a fetus might survive outside the womb. Some babies can survive with medical help after 21 weeks of gestation.

Abortion was on the ballot in several other states, as well. Coming into the election, voters in all seven states that had decided on abortion-related ballot measures since the reversal of Roe had favored abortion rights, including in some conservative states.

Who is behind the Nebraska abortion measures?

The 12-week ban measure was bankrolled by some of Nebraska’s wealthiest people, including Republican Sen. Pete Ricketts, who previously served as governor and donated more than $1.1 million. His mother, Marlene Ricketts, gave $4 million to the cause. Members of the Peed family, which owns publishing company Sandhills Global, also gave $1 million.

The effort was organized under the name Protect Women and Children and was heavily backed by religious organizations, including the Nebraska Catholic Conference, a lobbying group that has organized rallies, phone banks and community townhalls to drum up support for the measure.

The effort to enshrine viability as the standard was called Protect Our Rights Nebraska and had the backing of several medical, advocacy and social justice groups. Planned Parenthood donated nearly $1 million to the cause, with the American Civil Liberties Union, I Be Black Girl, Nebraska Appleseed and the Women’s Fund of Omaha also contributing significantly to the roughly $3.7 million raised by Protect Our Rights.

What other initiatives were on Nebraska’s ballot?

Nebraska voters approved two measures Tuesday that will create a system for the use and manufacture of medical marijuana, if the measures survive an ongoing legal challenge.

The measures legalize the possession and use of medical marijuana, and allow for the manufacture, distribution and delivery of the drug. One would let patients and caregivers possess up to 5 ounces (142 grams) of marijuana if recommended by a doctor. The other would create the Nebraska Medical Cannabis Commission, which would oversee the private groups that would manufacture and dispense the drug.

Those initiatives were challenged over allegations that the petition campaign that put them on the ballot broke election rules. Nebraska’s attorney general said supporters of the measures may have submitted several thousand invalid signatures, and one man has been charged in connection with 164 allegedly fraudulent signatures. That means a judge could still invalidate the measures.

Voters also opted Tuesday to repeal a new conservative-backed law that allocates millions of dollars in taxpayer money to fund private school tuition.

Finally, they approved a measure that will require all Nebraska employers to provide at least 40 hours of paid sick leave to their employees.

The Canadian Press. All rights reserved.

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Abortion rights advocates win in 7 states and clear way to overturn Missouri ban but lose in 3

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WASHINGTON (AP) — Voters in Missouri cleared the way to undo one of the nation’s most restrictive abortion bans in one of seven victories for abortion rights advocates, while Florida, Nebraska and South Dakota defeated similar constitutional amendments, leaving bans in place.

Abortion rights amendments also passed in Arizona, Colorado, Maryland and Montana. Nevada voters also approved an amendment, but they’ll need to pass it again it 2026 for it to take effect. Another that bans discrimination on the basis of “pregnancy outcomes” prevailed in New York.

The results include firsts for the abortion landscape, which underwent a seismic shift in 2022 when the U.S. Supreme Court overturned Roe v. Wade, a ruling that ended a nationwide right to abortion and cleared the way for bans to take effect in most Republican-controlled states.

They also came in the same election that Republican Donald Trump won the presidency. Among his inconsistent positions on abortion has been an insistence that it’s an issue best left to the states. Still, the president can have a major impact on abortion policy through executive action.

In the meantime, Missouri is positioned to be the first state where a vote will undo a ban on abortion at all stages of pregnancy, with an amendment that would allow lawmakers to restrict abortions only past the point of a fetus’ viability — usually considered after 21 weeks, although there’s no exact defined time frame.

But the ban, and other restrictive laws, are not automatically repealed. Advocates now have to ask courts to overturn laws to square with the new amendment.

“Today, Missourians made history and sent a clear message: decisions around pregnancy, including abortion, birth control, and miscarriage care are personal and private and should be left up to patients and their families, not politicians,” Rachel Sweet, campaign manager of Missourians for Constitutional Freedom, said in a statement.

Roughly half of Missouri’s voters said abortion should be legal in all or most cases, according to AP VoteCast, a survey of more than 2,200 of the state’s voters. But only about 1 in 10 said abortion should be illegal in all cases; nearly 4 in 10 said abortion should be illegal in most cases.

Bans remain in place in three states after votes

Florida, Nebraska and South Dakota became the first states since Roe was overturned where abortion opponents prevailed on a ballot measure. Most voters supported the Florida measure, but it fell short of the required 60% to pass constitutional amendments in the state. Most states require a simple majority.

The result was a political win for Gov. Ron DeSantis, a Republican with a national profile, who had steered state GOP funds to the cause. His administration has weighed in, too, with a campaign against the measure, investigators questioning people who signed petitions to add it to the ballot and threats to TV stations that aired one commercial supporting it.

Marjorie Dannenfelser, president of the national anti-abortion group SBA Pro-Life America, said in a statement that the result is “a momentous victory for life in Florida and for our entire country,” praising DeSantis for leading the charge against the measure.

The defeat makes permanent a shift in the Southern abortion landscape that began when the state’s six-week ban took effect in May. That removed Florida as a destination for abortion for many women from nearby states with deeper bans and also led to far more women from the state traveling to obtain abortion. The nearest states with looser restrictions are North Carolina and Virginia — hundreds of miles away.

“The reality is because of Florida’s constitution a minority of Florida voters have decided Amendment 4 will not be adopted,” said Lauren Brenzel, campaign director for the Yes on 4 Campaign said while wiping away tears. “The reality is a majority of Floridians just voted to end Florida’s abortion ban.”

In South Dakota, another state with a ban on abortion throughout pregnancy with some exceptions, the defeat of an abortion measure was more decisive. It would have allowed some regulations related to the health of the woman after 12 weeks. Because of that wrinkle, most national abortion-rights groups did not support it.

Voters in Nebraska adopted a measure that allows more abortion restrictions and enshrines the state’s current 12-week ban and rejected a competing measure that would have ensured abortion rights.

Other states guaranteed abortion rights

Arizona’s amendment will mean replacing the current law that bans abortion after the first 15 weeks of pregnancy. The new measure ensures abortion access until viability. A ballot measure there gained momentum after a state Supreme Court ruling in April found that the state could enforce a strict abortion ban adopted in 1864. Some GOP lawmakers joined with Democrats to repeal the law before it could be enforced.

In Maryland, the abortion rights amendment is a legal change that won’t make an immediate difference to abortion access in a state that already allows it.

It’s a similar situation in Montana, where abortion is already legal until viability.

The Colorado measure exceeded the 55% of support required to pass. Besides enshrining access, it also undoes an earlier amendment that barred using state and local government funding for abortion, opening the possibility of state Medicaid and government employee insurance plans covering care.

A New York equal rights law that abortion rights group say will bolster abortion rights also passed. It doesn’t contain the word “abortion” but rather bans discrimination on the basis of “pregnancy outcomes, and reproductive healthcare and autonomy.” Sasha Ahuja, campaign director of New Yorkers for Equal Rights, called the result “a monumental victory for all New Yorkers” and a vote against opponents who she says used misleading parental rights and anti-trans messages to thwart the measure.

The results end a win streak for abortion-rights advocates

Until Tuesday, abortion rights advocates had prevailed on all seven measures that have appeared on statewide ballots since the fall of Roe.

The abortion rights campaigns have a big fundraising advantage this year. Their opponents’ efforts are focused on portraying the amendments as too extreme rather than abortion as immoral.

Currently, 13 states are enforcing bans at all stages of pregnancy, with some exceptions. Four more bar abortion in most cases after about six weeks of pregnancy — before women often realize they’re pregnant. Despite the bans, the number of monthly abortions in the U.S. has risen slightly, because of the growing use of abortion pills and organized efforts to help women travel for abortion. Still, advocates say the bans have reduced access, especially for lower-income and minority residents of the states with bans.

The issue is resonating with voters. About one-fourth said abortion policy was the single most important factor for their vote, according to AP VoteCast, a sweeping survey of more than 110,000 voters nationwide. Close to half said it was an important factor, but not the most important. Just over 1 in 10 said it was a minor factor.

The outcomes of ballot initiatives that sought to overturn strict abortion bans in Florida and Missouri were very important to a majority of voters in the states. More than half of Florida voters identified the result of the amendment as very important, while roughly 6 in 10 of Missouri’s voters said the same, the survey found.

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Associated Press reporters Hannah Fingerhut and Amanda Seitz contributed to this article.

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This article has been corrected to reflect in the ‘other states’ section that Montana, not Missouri, currently allows abortion until viability.

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