Why is it so hard to buy Crypto?
Cryptocurrency and other digital assets have exploded in popularity in recent years, with many people around the world looking to invest in these new and exciting markets. However, for people in emerging markets, accessing these assets has proven to be more difficult than for their counterparts in developed countries.
One major barrier to purchasing cryptocurrency and other digital assets in emerging markets is that many people in these countries do not have access to credit or debit cards. In many cases, people in emerging markets may not have a bank account at all, making it difficult for them to easily purchase cryptocurrency or other digital assets. Even for those who do have a bank account, the infrastructure for accessing and using credit and debit cards may not be as developed in emerging markets, further limiting their ability to participate in the digital asset markets.
Additionally, since many crypto ramps companies are based in the United States or Europe, international customers who do have access to cards typically suffer from low authorization rates .Cross-border credit and debit card transactions often have low authorization rates because of the increased risk involved with processing payments between countries. When a transaction is processed, the issuing bank must ensure that the funds are available and the transaction is secure.
This can be difficult to do when the transaction involves a foreign bank or a country with a high risk of fraud. As a result, many banks are hesitant to authorize these types of transactions, leading to a lower overall authorization rate. Additionally, the different regulations and security measures in place in different countries can make it challenging for banks to process cross-border transactions quickly and efficiently.
For example, in Brazil the most popular payment method is called PIX. PIX is a relatively new payment system that has been introduced in Brazil. It is a real-time payment system that allows users to make and receive payments instantly using a mobile app or online platform. In contrast, traditional credit card payments involve the use of a physical card and require some time to process the transaction, typically a few days.
Currently there are very few ways for Brazil customers to buy crypto using PIX in a safe way. That is why C14 built out a payment rail specifically for Brazilians to easily access digital assets.
Furthermore, even for those who do have access to financial services, the infrastructure for purchasing and trading cryptocurrency and other digital assets may not be as developed in emerging markets. In many cases, people in these countries may not have access to the same exchanges or other platforms that are available in developed countries, making it difficult for them to participate in the digital asset markets.
Additionally, the legal and regulatory environment for cryptocurrency and other digital assets is often less developed in emerging markets. In many cases, governments in these countries may not have clear rules or regulations surrounding the use and trade of these assets, leading to uncertainty and potential legal issues for those who want to invest in them.
Finally, there is often a lack of education and understanding about cryptocurrency and other digital assets in emerging markets. Many people in these countries may not be familiar with the technology or the potential benefits of investing in these assets, making it difficult for them to make informed decisions about whether to participate in the market.
Overall, while cryptocurrency and other digital assets have the potential to be a powerful tool for financial inclusion and empowerment, the challenges faced by people in emerging markets make it difficult for them to participate in these markets. In order to overcome these challenges, it will be important for governments, financial institutions, and other stakeholders to work together to develop the necessary infrastructure, regulations, and education to enable people in these countries to access and benefit from these exciting new technologies.
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