When many of us think of crypto use in Latin America, our minds tend to go to countries like Brazil and Argentina. However, Guyana appears to be fast making a name for itself in the crypto scene and could soon stand side-by-side with these countries.
On the surface, it is easy to dismiss the country’s potential as an economic powerhouse; for decades, we’ve grappled with a small population and a high poverty rate. These aren’t exactly ingredients for the making of a crypto hub but we seem to be headed in that direction against all odds.
First, it is worth noting that while Guyana has a high poverty rate, our GDP has been steadily climbing for the last few years, setting the scene for citizens to use assets like crypto more. A lot of this prosperity can be attributed to our new-found oil wealth which is fast-creating higher economic opportunities for citizens.
With this wealth has come efforts from the government to prevent corruption and create better opportunities for its citizens, which could include cryptocurrency. Currently, the state of cryptocurrency in the country is rather mixed.
Unlike countries like China, crypto is not banned in Guyana. At the same time, it isn’t legal tender the way it is in El Salvador. Crypto can simply be used by citizens without any government repercussions. And with the current economic boom, there are several possibilities.
There is a chance for citizens to invest in the horde of tokens on the market with their newfound disposable income. The crypto market has no shortage of everything from utility to meme coins. In fact, as Alan Draper explains, many are constantly looking for the best meme coin to buy to get the most value. We can expect to see a bigger volume of investments coming out of the country.
There is also the possibility of more gambling with crypto. Online casinos have been a phenomenon for years and come with fewer restrictions than land-based ones. As more Guyanese people are able to afford to gamble, we could see them turn to a platform like an anonymous casino to get their needs met.
But with this growing crypto use will also come a responsibility for the government to put in crypto laws, which have largely been ignored thus far. In the same way that the oil boom has led to practice steps by the government to manage its new wealth, so will crypto use.
There are several aspects to this, including tax, business registration, prosecuting crime, and so on. Taxation especially has been taken more seriously by governments around the world, including the United Kingdom and Australia. This has mostly been a result of the growing financial implications of crypto. Many countries could afford to ignore crypto taxation when the industry was smaller but now that it is worth billions, tax agencies are incentivized to put laws in place.
The same can be said of business registration. When there are no laws in place to govern how crypto businesses operate (partially because their financial impact is still limited), the industry exists as a Wild West. But when structures are put in place, order is restored and customers enjoy more protection across the board.
The more people use crypto, the more they will be targeted by scammers and it is the job of the government to prosecute these criminals. We’re seeing more high profile arrests and prosecutions of crypto scammers and this will only continue over time. Guyana finds itself in a unique place as while it has lagged behind other countries when it comes to crypto, especially in Latin America, it is poised to see rapid development in the next few years.
This development will see the country receive more investment from the crypto industry in the form of exchanges, crypto ATMs, blockchain projects, and much more. The government will also need to keep up with these new developments by taking crypto-related laws more seriously, putting frameworks in place to guide businesses, and creating a favourable environment for the industry to thrive. It will take several years to fully unravel but all eyes are on Guyana as the next big crypto hub in Latin America.
