Binance, one of the leading crypto exchanges in the world with over $50 million of liquidity, has just announced the launch of a fiat to crypto gateway in South America called Binance Latamex. Initially, the platform will be available for citizens of Argentina and Brazil, but will eventually roll out across the entire South American continent.
Cryptocurrency is becoming an increasingly desirable option in South America due to accelerating fiat inflation, so Binance’s entrance into the South American market is well-timed. Over the past five years, the Brazillian Real (BRL) has lost 37% of its value relative to the USD, and the situation in Argentina is even worse with the Argentine Peso (ARS) losing 87% of its value versus the USD during the same period of time.
In fact, in the past year alone the ARS has lost 37% of its value relative to the USD, which can be considered hyperinflation. Even with Bitcoin’s (BTC) infamous volatility, it is still a better store of value than any hyperinflating fiat currency.
It is quite possible that the entrance of Binance into South America will drastically increase crypto adoption in the region. There is a strong need for cryptocurrency, yet there has been a lack of reputable and highly liquid exchanges up until now.
Binance Latamex is just the latest in a series of fiat to crypto gateways that Binance has launched. Binance Uganda, Binance Jersey, Binance Singapore, and Binance US have also been launched in the last 1-2 years.
Ultimately, more fiat to crypto gateways increases the amount of capital which can enter the crypto space, so Binance’s recent flurry of fiat to crypto gateway launches has the potential to increase the price of Bitcoin (BTC) and other cryptocurrencies long term.