Ethereum has the potential to empower communities that are disenfranchised in Latin America

This is an update on Ethereum Foundation Fellow Marcus AM.

Hola 👋, my name is Marcus and I’m a researcher and builder from Guatemala, and an EF Fellow. As a lifelong optimist, my passion is to use social, cultural, and technological innovations to create better societies.

Guatemala: A Land of Challenging Opportunity

When I was a kid, my father took me on weekend trips to the most desolate towns in Guatemala. The non-profit that he was working for at the time had a mission to establish educational and healthcare programs in last-mile communities. Puntarenas is the place we visit most frequently.

In order to get to Puntarenas we had to travel by boat for up to three-hours through dense mangrove forest to a deep jungle village. Puntarenas, when we started our visits, had little access to clean water and no educational or healthcare infrastructure.

The people of Puntarenas were seeking refuge during the civil conflict from the violence that killed over 200,000 innocent citizens. The harsh reality of US intervention in Latin America and beyond during the Cold War will be left out for the moment. However, if you are interested in finding out more, I highly recommend Schlesinger’s and Kinzer’s books. Bitter Fruit.

We have worked with the Puntarenas community over the years to establish healthcare clinics, build housing and raise money for infrastructure investments. This includes a community-run school.

Fast forward two decades and Puntarenas, a village that is self-sufficient, has access to education, health care, water, and even energy, delivered by solar panels, which power a handful of computers at the local school. Puntarenas’ story is a great example of how basic services, such as healthcare and education, can have a big impact on a community.

Puntarenas is a story that reflects the real Guatemala, a country full of culture and heritage with stunning landscapes. Guatemala is a country that appears rich at first sight. the highest GDP in Central America Then, there was a point when the highest number of helicopters Globally, per capita

Guatemala’s socioeconomic fabric, however, paints a completely different picture. The country faces extreme inequality, which was brought on by a 36-year-long civil war. We also have a history that is marked by exploitation and corrupt practices. In Guatemala’s rural regions and especially in the indigenous areas, it is common to find communities, such as Puntarena, that are cut off from basic necessities like running water, electricity, housing, healthcare, education and food. In spite of the difficult conditions, many people in these rural regions work to create better lives for themselves and others.

The Impact Begins at Home

One of the biggest challenges in development is that over 19.6 million people in Guatemala live in desolate living conditions. In the worst cases, there are multiple generations living in a room with open fire stoves, polluting the air. Sanitation is not even considered.

Our belief is that dignified housing will lead to a better future for everyone. Our homes are where most of us spend our time. They are also where we go to school, gather with our families, and dream.

It is for this reason that a group of friends I have known all my life are working with me on a project called Lamina POP. Lamina POP, a patented building technology, uses common construction materials to create affordable, lightweight and architecturally sound houses. It is easy to use and can be used in the remotest areas of Guatemala.

Lamina POP, in collaboration with partners such as Habitat for Humanity and Stanford University, is improving the lives of people for whom we are building homes. Together, we believe a home can be so much more. It’s an opportunity for a renewed feeling of optimism and progress.

Dignified housing has tangible results. We’ve seen how the Lamina POP can be a powerful driver for development. We’re excited to deliver more innovative solutions in Guatemala and beyond as we continue our development.

Lack of awareness is one of the biggest barriers to mass adoption for innovative solutions, such as Lamina POP. financial Infrastructure and education for disenfranchised groups. Lamina POP’s housing solution is 30% cheaper compared to other affordable housing alternatives. However, those who we want to help build homes for cannot get low-interest loans.

There are many different kinds of financial transactions that take place throughout these communities happen in the ‘informal’ economy. Cash is used to pay for goods and services, debts aren’t recorded and the economy doesn’t include any formal accounting. financial institutions. The current systems make it nearly impossible to send money, get low-interest rate loans, build credit, and track commerce. financial Infrastructure in Guatemala. Operating in the ‘informal’ economy keeps the door closed for everyday people to leverage personal loans, business investments, let alone a mortgage.

Many of these people are forced to rely on predatory lending institutions (including traditional lenders). financial Institutions) that often exploit vulnerable people for their own gain. own benefit. In Latin America, it is common to find loan sharks who will lend at a 20% monthly interest rate. Crippling debt leaves many in precarious situations Forcing them to lose their property deeds or to become delinquent, and even worse to take away their own lives.

Crypto Help:

Crypto promises to create new and more equitable economic models, which can benefit everyone. Not just the rich and powerful. DeFi is seen by some as a promise that can provide financial Many people who do not have traditional access to services may be able to receive them financial In emerging economies, instruments are being used to empower some of the most marginalized communities in the world.

You’re probably optimistic about technology’s potential to solve some of these issues. Maybe decentralized networks are the answer. Revolutionize the way you do business The way we relate to ourselves, others, and power systems. Maybe it’s just apps that assess creditworthiness using new, more accurate digital information so they can receive a reasonable interest rate for a small loan. I think reality will be somewhere between.

DeFi in its current state is a stretch. It’s not ready to offer viable new ways to financial We need to scale up inclusion. Digital inclusion faces huge obstacles. financial There are significant issues with user experience, including literacy, trust in institutions, and challenges related to the user’s experience. But I still believe that, despite where the industry is at the moment, we can build solutions that are tailored for communities like Puntarenas.

My Next Billion Fellowship

The last few weeks I have actively explored ways to break this barrier. financial Empowerment by harnessing the power of Ethereum. I want to investigate a range of solutions that are powered by cryptographic technology for financial Inclusion and access to credit will ultimately allow human flourishing in Guatemala and beyond.

I’ve been researching money legos that might be useful for a place such as Puntarenas, and the rest of Guatemala. I’ve spent time researching adoption barriers and possible solutions to enable peer-to-peer loans for those who do not have access to other more equitable lending methods. financial mechanisms.

As part of my research, I have interviewed members of hundreds crypto projects, including those who are leading DeFi protocols and DAOs as well as identity and scaling solutions. Other core developers, designers and wallet builders were also interviewed. In addition, I have conducted interviews and conversations with leading local projects, government offices and international NGOs in Guatemala and other emerging countries to better understand how they see crypto as a tool for new forms of coordination and equity. financial services.

This research was incredibly insightful, and it has helped me gain a deeper understanding of DeFi’s current state and the potential of the crypto ecosystem in emerging economies.

Next Steps

Currently, i am preparing for an open source Report that provides a detailed understanding and offers recommendations on how best to utilize crypto to unlock even more financial Included in particular are those from emerging economies. The final report will be published by the end of March (just before ETHDenver). So keep an eye out!

I will publish an audio-visual report that features a variety of stakeholders. These include crypto-native builders and thought-leaders, as well those who deploy solutions in emerging markets that leverage crypto.

The report and videos I’m creating are primarily for crypto builders who would like to know the best landscape of technical, education and social challenges and opportunity that should be considered. They also include impact-driven organizations in emerging countries that want to learn how crypto can benefit their efforts.

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