Argentines Flock to Crypto Games as Economy Eats up Salaries

“My mother doesn’t understand how I can spend my time playing games instead of doing something fruitful. But what’s the point of working hard if I can earn more like this?” Mr Javier Espeche (34)

Espeche is not alone. Argentina has become the top place in Latin America for “play to earn” crypto games, as inflation is running at a 10 month high, eroding the values of local salaries in its wake.

Argentina is the fifth in the world when it comes to playing games for income, as 9,400 people visited Decentral Games this year. Decentral is a metaverse company with the highest number of players in the world.

As prices are growing at a pace above 50% annually and wages have grown below inflation for the last four years, Argentines want more than profit – they are looking for fun too. To achieve this, Latin Americans usually participate in a game on behalf of Americans as they cannot afford to open their own accounts. As an example, Decentral Games, requires that players have an NFT in order to play.

Source: Decentral Games. *Data between March 1 and 15, 2022

The requisite to own an NFT means that the entry levels are so high that Latin Americans end up getting paid to play. In the case of Franco Villaflor, a 28 year old DJ who plays for three hours a day earns as much as $1,500 a month. The equivalent to what he makes as a DJ! And this is after giving 40% of the proceeds to the owner of the NFT. [1]

GBF Latin America to Unlock Untapped Trade Potential

According to Hamad Buamim, the President and CEO of Dubai Chambers, this years’ GBF Latin America provides the opportunity to look beyond (pandemic) recovery mode. “It is a great boost for taking bilateral relations and trade to new heights.”

The Covid-19 pandemic has created a further impetus for reforms, with governments and businesses across Latin America taking bold steps to bring new dynamism to the private sector, dismantling obstacles to trade and focusing on new markets.

A survey conducted in 2021 which involved over 200 Latin American executives, found that approximately 31% of the respondents said they were currently exporting to the Middle East but wanted to expand and 46% said they were not currently trading but highly interested in doing so.

Buamim said it was this untapped potential that Dubai Chambers was working to capture, positioning the emirate for companies from Latin America and the Caribbean nations to help connect with other global economies, especially in Asia and the East. “Dubai businesses are strong on supply chain and logistics, tourism and hospitality, and real estate. There are discussions going on in these areas which might be of great interest to both sides,” [2]

Rising EV Sales in Latin America

Russia’s invasion of Ukraine has shocked the world and made everyone wonder how the effects will affect them. Colin McKerracher considered what the war means for the automotive industry and mobility. 

Electric vehicles are gaining momentum in Latin America, especially with luxury car buyers driving the demand. Passenger EV sales have almost doubled every year since 2016 and did so again 2021. Brazil, the largest nation in the region, accounts for more than half of Latin America’s EV market.

Whilst Latin America’s sales are small compared to China, Europe and the US, the incremental policy changes, improving economics, new models and expanded public charging infrastructure point towards growth in Latin America through to 2025. [3]

New Mobility Hub Launched to Help International Companies to Scale to Latin America

Güil Mobility Ventures, a Santiago based company builder and VC fund (established by the Kaufmann group) has launched an equity free zero cost program to mobility companies and startups with a drive to enter the Latin American market. For 14 weeks, entrepreneurs from around the world will be able to connect with industry experts, prospective clients, and VCs. By participating in this online program, startups will have a chance to raise up to $1.5 million.

“The current global energy crisis precipitated the need for sustainable user-centric mobility solutions around the world,” said Kazuna Yamamoto, Güil VC specialist. ”Güil supports high-impact startups intending to scale to the Latin American market. The program is based on years of research and experience across the company as well as the Kaufmann group’s mission to facilitate mobility. Our methodology lets us test and grow a wide range of solutions.” 

Güil Mobility Ventures’ portfolio includes Awto, the largest Latin American car sharing startup; EVSY, the ”Waze” of electric vehicle owners; eTrans, which develops fleet management systems for transportation; Kupos, which digitizes payment methods for transport in Chile; Quickspace, a marketplace for cargo services, and others. [4]

Latin America Embedded Lending Market Report 2022-2029 - Embedded Lending to Revolutionize the Trade Finance Market

Latin America’s Embedded Lending industry is expected to grow by 53.1% on annual basis to reach US$1,716.0 million in 2022. The embedded lending industry is expected to grow steadily over the forecast period, recording a CAGR of 30.2% during 2022-2029. The embedded lending revenues in the region will increase from US$1,716.0 million in 2022 to reach US$7,106.3 million by 2029.

Latin America’s embedded lending is in its nascent stages of development. However, it is expected to transform the financial industry by accelerating collaboration between banks, FinTech and big tech firms. To date, the emergence of embedded lending has brought cross-sector collaboration in Asia, Europe and the United States. Latin American is now posed to follow suit and give rise to a banking system that is available anywhere and at any time. 

The financing system in Latin America could be described as broken, making it nearly impossible for small exporters to compete with large exporters. Embedded lending will revolutionise the trade finance market in Latin America. [5]

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