Bitcoin rewards company Fold has taken a bold step forward by establishing an office and local team in El Salvador, expanding its presence in Latin America. The move comes as the region experiences an appetite for investment in cryptocurrency, despite recent concerns over blockchain transaction fees impacting users. In 2020, Fold partnered with Visa to offer a prepaid debit card rewarding users with up to 1% cash back paid in BTC. They recently announced plans to expand this partnership globally.
Choosing to establish a base in Latin America, and specifically El Salvador, is an interesting decision considering the recent spike in Bitcoin transaction fees. Some Salvadorans have found these fees to be prohibitively expensive due to the sudden explosion in transactions, driven by the on-chain minting of BRC-20 tokens. However, there are indications that this flurry of on-chain activity is slowing down. The Bitcoin mempool, a database of unconfirmed transactions, has seen a decrease from nearly 500,000 unconfirmed transactions to roughly 250,000. It is worth noting that the number of unconfirmed transactions generally stayed under 50,000 last year.
El Salvador stands out as an ideal location for Fold’s expansion due to its unique status within the cryptocurrency world. The nation became the first country to adopt Bitcoin as legal tender in 2021, indicating a strong commitment to embracing new monetary technology. Fold’s CEO, Will Reeves, expressed excitement about the company’s expansion into the Salvadoran market, citing the nation’s pioneering role in the adoption of Bitcoin.
While the move into El Salvador and the broader Latin American market holds considerable promise for Fold and its users, it is essential to weigh the potential challenges that may arise. High transaction fees could deter some users from fully embracing Bitcoin as a currency or a means of daily transactions. Conversely, if the mempool continues to experience a decline in unconfirmed transactions, it could signal a more stable environment for cryptocurrency adoption, which would directly benefit Fold and its customers.
Regardless of the fluctuations in transaction fees and the Bitcoin mempool’s activity, Fold’s expansion into Latin America, starting with El Salvador, marks an important milestone in the ongoing growth and acceptance of cryptocurrencies. As the market continues to evolve and develop new technological advancements, companies like Fold play a crucial role in promoting and fostering this evolution towards a future powered by blockchain and digital assets.
Source: Coindesk
