The digital era has brought with it a revolutionary change in the financial sector. The digitalization of traditional banking, the arrival of neobanks, and the creation of cryptocurrencies are some of the major changes that today benefit a larger part of the population.
In countries like Colombia, where financial inclusion has yet to improve significantly, these changes have allowed for slow but steady progress. Although inclusion in the country is at a medium-low level in the region, with just 26.3% in 2023, fintechs have played a role in Latin America’s progress in financial inclusion.
In the context of a globalized labor market, financial inclusion is key so that more people can provide their services to companies anywhere in the world without the barriers of traditional banking.
Manuel Beaudroit, the founder and CEO of fintech startup belo has been combining his innovative entrepreneurial spirit with his passion for cryptocurrencies to establish a platform that allows freelancers, digital nomads, and anyone who requires it, to send and receive payments in various currencies such as Colombian pesos, dollars, among others, pay in establishments anywhere in the world and even buy cryptocurrencies such as BTC, ETH, DAI, USDT, and more.
The Bogotá Post spoke with Beaudroit to learn how the adoption of fintech and cryptocurrencies are aiming to provide greater financial inclusion across Latin America, and the impact on the economy that access to more financial tools is having. The interview was edited for brevity and clarity.
The Bogotá Post: How are cryptocurrency platforms impacting the digital economy in Latin America and what specific benefits do they offer to freelancers and remote workers?
First off, let’s say that cryptocurrency is the internet’s native money: digital and global. It’s a great tool for those who want to run their business effectively. Being totally digital, the trading opportunities are endless, allowing freelancers and remote workers to tap into markets and opportunities that were previously out of reach.
Plus, cryptocurrency gives you more control over your money. You can decide how to move it, when to receive it, and how to invest it. This is super handy for freelancers and remote workers managing their own finances.
Another advantage is that costs are more transparent and generally lower than traditional platforms. This way, freelancers and remote workers can save time and money without having to pay commissions and other fees associated with traditional transactions.
Lastly, cryptocurrency also offers access to better savings and investment services, which used to be available only to people with lots of assets and connections. So, this means freelancers and remote workers can invest in opportunities that were previously beyond their reach.
So to sum it up, I think cryptocurrency platforms are completely revolutionizing the digital economy in Latin America, offering specific benefits for freelancers and remote workers: more trading options, better money control, clearer costs, and improved investment opportunities.
What role do cryptocurrencies play in financial inclusion and how do they facilitate transactions for those outside the traditional banking system?
Great question! In the 21st century, I’d say the financial world has been changed completely by the creation of cryptocurrencies. These cryptocurrencies are basically systems that don’t need any permission to use, meaning that literally anyone with internet access can get involved. This accessibility has led to a significantly low barrier to entry, which in turn has helped cryptocurrencies become the most inclusive asset in the world.
So thanks to cryptocurrencies, people who didn’t have access to traditional financial markets now have a way in. Anyone can buy, sell, and use cryptocurrencies without needing intermediaries or authorizations, so, this is definitely making finance more democratic and accessible to everyone.
Additionally, in specific situations where people are vulnerable, cryptocurrencies can be crucial for preserving privacy and protecting money from being used as a tool of coercion. Since they don’t rely on financial intermediaries or authorities, they can protect the identity and financial freedom of those who need it most. In this way, I think cryptocurrencies are a powerful tool to promote financial inclusion and privacy protection.
How have cryptocurrency platforms enabled Colombian freelancers to access international markets?
In the digital age, cryptocurrencies have totally transformed how we trade and build wealth. As a tool for e-commerce, they let anyone, anywhere, trade globally and tap into financial markets quickly and securely. This has really lowered the barriers to making money, giving Colombian freelancers and basically people everywhere, access to investment and trading opportunities that just weren’t possible before.
Because they offer a faster, safer, and more efficient way to handle money, Cryptocurrencies are catching on all over the world and are starting to replace traditional banking services, which can be pricey, confusing, and too slow.
One interesting thing about cryptocurrencies that doesn’t get enough attention is their ability to handle micropayments. So, this means sellers of digital goods can sell their stuff for less than a dollar. It’s especially handy for creators of low-value digital products. For example, an artist can sell their digital artwork for small amounts of cryptocurrency, which helps them make extra money and reach a bigger audience.
Cryptocurrencies have changed the game for trading and wealth creation and they offer Colombian freelancers quicker, safer, and more efficient financial transactions. Plus, the ability to do micropayments has opened up new opportunities for digital goods sellers, making it easier for more people to generate wealth.
What benefits do freelancers in Latin America see in using platforms to receive payments?
Freelancers in Latin America can benefit in so many ways from using cryptocurrencies! They’re totally changing how we get paid and handle money, one of the best parts is how fast payments are. With cryptocurrencies, freelancers can get paid quickly and securely, without any surprises or delays, which is super helpful if they need reliable and fast payments.
Another great advantage is knowing exactly how much you’ll get. Freelancers can rest assured that there are no hidden fees or delays with cryptocurrencies, making everything more transparent and secure for them.
They’re also way cheaper to use than traditional banking, transaction fees are lower, and there aren’t any hidden charges. You also have the flexibility to choose the currency you get paid in, which gives freelance workers more freedom.
Plus, being able to have your own bank account in the US or Europe to receive payments is a huge bonus. It eliminates the need for middlemen, giving these workers greater security and control over their finances.
In short, using cryptocurrencies offers Latin American freelancers a fast, secure, and affordable way to manage payments and finances. The certainty of the final amount, flexibility in currency choice, and the ability to have a bank account in their name are some of the top benefits.
Concerning the volatility of cryptocurrencies, what strategies would you recommend for remote workers to manage their income and minimize risk?
That’s a great question! Before jumping into the world of cryptocurrencies, I think it’s important to note that specific investments are not recommended and that each person needs to do their own research to make informed decisions about their money.
So, in the crypto world, there are two main groups: stable cryptocurrencies and the rest. Stable cryptocurrencies like USDC, DAI & USDT, are based on the US dollar and keep a fixed value, making them ideal for those looking for a safe and stable way to invest. So these cryptocurrencies would be a great option for those looking for a safe and predictable way to save or invest.
Then you have other cryptocurrencies like Bitcoin and Ethereum, which have high volatility and are often used more for speculating on their rising price. These cryptocurrencies are riskier and ideal for those looking for a way to speculate and take risks in the market.
It’s important to highlight that each cryptocurrency has its own characteristics and risks, and these factors need to be taken into account before making an investment decision. To wrap it up, stable cryptocurrencies are a safer and stabler investment option, while more volatile ones offer opportunities for speculation and taking risks, so it’s important that remote workers understand this and do their research to see what works best for them and make the smartest choice.
Disclosure: This article mentions a client of an Espacio portfolio company.