Unlocking Latin America's economic potential: the role of digital assets in boosting tax revenue (part 2)

In part one of this analysis of Latin America we looked at its youthful demographics, the prevalence of its informal economy and the growing interest in digital assets. In part two, we consider how the adoption of digital assets, including central bank digital currencies (CBDCs), is viewed as a way to boost tax revenue, drive economic development and improve regulatory frameworks. Whilst some LAC countries are taking proactive approaches to regulate cryptoassets, challenges include a lack of regulatory expertise, regulatory fragmentation and unclear definitions. To mitigate risks, regulators are considering measures such as cybersecurity protocols and anti-money laundering regulations.

The increase in tax revenue has significant implications for Latin American governments. It allows them to invest in critical areas such as infrastructure, education and healthcare, ultimately fostering economic development and improving the quality of life for their citizens. Several governments in the …