Rosales et al. (2023). Poor miners and empty e-wallets - Latin American experiences with cryptocurrencies in crisis (p. 1-12)

Introduction

• Research Focus: Examination of how cryptocurrencies are tied to crises in Latin America, specifically in the political discourse and economic life of countries like El Salvador and Venezuela.

• Interdisciplinary Approach: Mix of human geography, political economy, and cultural anthropology to assess the intersection of cryptocurrency with economic precarity and exploitation.

• Thematic Concerns: Discusses how cryptocurrencies create spaces for economic survival while perpetuating vulnerability, inequality, and forms of crypto-colonialism.

Key Terms

• Cryptocurrency: Digital or virtual currency that uses cryptography for security, making it difficult to counterfeit.

• Crypto-colonialism: The exploitation of emerging digital currencies, reflecting historical patterns of colonial exploitation.

Case Studies

El Salvador

• Bitcoin Policy: Officially declared Bitcoin as legal tender; mixed reactions within the community regarding financial inclusion.

• Political Landscape: Rise of populist leader Nayib Bukele, whose leadership is marked by authoritarianism.

Venezuela

• Economic Crisis: Severe economic meltdowns led citizens to adopt cryptocurrencies as alternative financial solutions.

• Governmental Adaptation: Establishment of legal frameworks for cryptocurrencies under the National Superintendence of Cryptocurrencies (SUNACRIP).

Cryptocurrency in Crisis Context

• Sample Experiences: El Salvador’s journey towards adopting Bitcoin amid stability concerns, contrasted with Venezuela’s hyperinflation and economic collapse

• Social Implications: Use of cryptocurrencies often touted as solutions to instability but documented evidence of exploitation and corruption.

The Political Economy of Cryptocurrencies

• Rising Trends: Increased cryptocurrency interest in the Global South, especially during turmoil in the Global North.

• Market Responses: Countries like El Salvador and Venezuela adapting rapidly, utilizing crypto to form new economic practices amid crises.

Investor and Community Dynamics

• Miners' Perspectives: Stories from everyday citizens (e.g., Guillermo) turn to cryptocurrencies as a means of financial survival, reflecting broader regional sentiments.

• Adoption Metrics: Venezuela ranks highly in cryptocurrency usage; informal exchanges becoming commonplace in a struggling economy.

Contributing Factors and Criticisms

• Authoritarianism and Corruption: In both case studies, elite political maneuvering often overshadow community empowerment narratives.

• Financial Inclusion Myth: The perception of freedom through decentralized finance is complicated by ongoing exploitation and state corruption.

Conclusion

• Complex Entanglement: The relationship between cryptocurrencies and socio-political crises examined critically, revealing tensions between speculative opportunities and systemic inequalities.

• Future Directions: Emphasizes need for localized studies to understand the real impacts of cryptocurrencies in diverse socio-economic environments.