Monday, March 27, 2023

6 reasons why blockchain companies need PR services

As with any business hoping to achieve success, blockchain companies need PR services to stand out from the competition and position their brand.


And these aren’t the only reasons to use blockchain PR strategies. Other important aspects impact this need in Latin America, as we’ll see in this text. But first, let’s look at what blockchain is, and how it has impacted the Latin American market.

What is Blockchain?

The clue is in the name. Blockchain unites the words “block” + “chain”. Virtual currency transactions are recorded in batches, known as blocks, and stored in the blockchain.

Each block has a unique mathematical code, called a hash, which serves as its fingerprint. The blocks are linked together in chronological order, forming a chain of blocks that creates an unbreakable and trustworthy record.

With advanced authentication and security features, combined with easy integration in a number of scenarios, blockchain technology offers great potential as a reliable alternative.

Blockchain in Latin America

Cryptocurrency adoption is growing rapidly in Latin America. Brazil has taken the lead in the region and is ranked 5th globally.

The country received close to $150 billion in cryptocurrencies last year, ahead of other Latin American countries like Argentina (ranked 13th), Colombia (15th), Ecuador (18th) and Mexico (28th) in the Chainalysis global cryptocurrency rankings.

Trust in blockchain technology varies by country and demographics, but generally speaking, it is growing in the region as more people become aware of its potential benefits and use cases.

Latin America stands out due to its embrace of blockchain technology. One possible reason for this is a lack of trust in traditional financial institutions.

Argentina

In Argentina, approximately 1.3 million people already use cryptocurrencies, and the country ranked 10th in the 2021 Global Cryptocurrency Adoption Index by Chainalysis.

Brazil

In Brazil, cryptocurrency adoption has skyrocketed, increasing from 2 million people to 10 million in 2022. It is estimated that 4.9% of the Brazilian population owns cryptocurrencies, and the country is quickly joining the Web3 revolution with a growing interest in NFTs.

Colombia

Colombia currently has 60 cryptocurrency ATMs in operation, the most of any Latin American country according to CoinATMRadar. In addition, the 2020 Statista Global Consumer Survey found that over 15% of Colombians have used or owned cryptocurrencies.

Cryptocurrency regulation is becoming more favorable in the country, with the government taking steps to reduce the regulatory gray area.

El Salvador

El Salvador became the most supportive blockchain ecosystem in Latin America in 2021, with the creation of a Bitcoin Law making it the first country to accept cryptocurrency as legal tender.

The country has 52 Bitcoin reforms currently under review, solidifying its regulatory leadership in the Latin American blockchain ecosystem.

Panama

Panama, Costa Rica, Brazil, and Paraguay are among the other countries exploring friendly regulations for Web3 builders. In Panama, regulations are expected to pass later this year, while Brazil is discussing a bill for cryptocurrency operations in Congress and offering tax incentives for the mining industry with the use of renewable energy and carbon offsetting.

Costa Rica & Paraguay

Costa Rica lets employees receive wages in cryptocurrencies, and companies receive payments in them, while Paraguay is moving towards regulating the industry with legislation for virtual asset providers, cryptocurrency mining and tokens.

Venezuela

Venezuela has its own cryptocurrency, Petro, and has a dedicated governmental department for regulating cryptocurrencies in the country, Sunacrip. In Venezuela, users need a license to mine or trade crypto.

6 reasons why blockchain companies need PR services

Last but not least, here are some of the many reasons why a blockchain business should seek to hire PR services. PR can:

Differentiate

Help companies stand out from their competitors by highlighting their unique value proposition and market positioning, in order to gain prominence and trust among target audiences in this new market, which still arouses great distrust among Latin American consumers.

Increase visibility

Increase the visibility of blockchain companies by amplifying their message to a wider audience, via media outlets and other communication channels.
Build credibility

Build credibility by providing a third-party endorsement of their products, services, and values.

Manage reputations

Manage a company's reputation by controlling the spread of negative information and promoting positive stories.

Educate

Educate the public about the benefits and uses of blockchain technology, which is still a relatively new concept for many people.

Build relationships

Build relationships with key stakeholders, including investors, customers, and partners, by promoting the company's message and achievements.

Final Thoughts

Every company looking to stand out and stay competitive in the market needs the assistance of a PR agency. PR agencies can define specific strategies for any business, aimed at the audience they want to reach, and help position blockchain companies as leaders in this space while increasing their competitiveness.

In Latin America in particular, blockchain companies need PR services due to the region's rapidly growing market for blockchain-based solutions and its growing need for transparency and trust in financial transactions.
by Web Desk via Digital Information World

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