Unlocking Latin America's economic potential: the role of digital assets in boosting tax revenue (part 1)

With a population of 666,504,674 in October 2023 (based on the latest United Nations estimates), Latin America and the Caribbean play a vital role in the global economic landscape. This diverse region is characterized not only by its rich culture and history but also by its youthful demographics, with an average age of 31 (2023). It accounts for 8.28% of the total world population and ranks among the most densely populated regions with a population density of 33 per square kilometer and with over 80% of its citizens living in urban areas. However, it grapples with a substantial informal economy that affects tax revenue collection. In this article, we explore how digital assets can serve as a catalyst for transforming the economic landscape and increasing tax revenue.

The informal economy in Latin America is sizeable, with a significant proportion of the workforce engaged in unregulated activities. Among the countries in the region, Bolivia has the highest level of workers employed info…