Member-only story
Crypto Crash Dashes Dreams In Latin America
After decades of economic turbulence, some in Latin America looked to Bitcoin and rival cryptocurrencies as an answer. They’ll have to wait longer.
The small group of Bitcoin enthusiasts that gathered in Quito, Ecuador in early 2014 weren’t there in a vacuum. Not long before, the country faced decades of 40% inflation, high default rates, stagnant growth, and a painful year where the government froze bank accounts. In 2000, Ecuador ditched its currency, the Sucre, in favor of the US dollar and its promised stability. Amid it all, people went into debt, lost fortunes, and fell into despair. Some committed suicide.
So, just as the world was becoming aware of digital currencies, people within the country decided to give Bitcoin a try. “I saw Ecuador as a perfect breeding ground for Bitcoin because it did not have its own currency,’ said Paul Buitink, who founded Ecuador’s first Bitcoin meetup while living in Quito eight years ago. Local economists and entrepreneurs participated enthusiastically.
Across Latin America, similar stories emerged. In countries like Ecuador, Argentina, Colombia, and El Salvador, Bitcoin represented — to some — a potential departure from state-backed currencies and their complications. To these…
