As the first decentralized cryptocurrency, Bitcoin started a revolution when it was created. In a world where governments frequently protect the institutions and fail to protect the consumers, the blockchain provided a welcome alternative by making decentralized exchanges possible.
In Latin America, companies are constantly struggling with bad economic conditions in their countries. UTEMIS is an e-commerce that provides a fresh solution by creating a system of decentralized business reputation based on the blockchain technology.
If you look at the economies of Latin American countries, you’ll see that situation is definitely not good for citizens of these countries. During the last decade, many Latin American countries have adopted economic measures that resemble the extreme measures Argentina imposed during the financial crisis, popularly known as the corralito. In 2001, people’s accounts were almost completely frozen with only small withdrawals allowed in devaluated local currency. This is not far from Latin American economies today. Arbitrary financial regulations and currency devaluations are very common, and these measures have a severe effect on people living in these countries.
As a result, people are starting to lose trust in national fiat currencies. Since the national economies don’t offer any security, they are now forced to look for alternative ways to protect themselves. In Venezuela, for example, people are increasingly buying Bitcoin in order to secure the control of their money. While this may be an extreme example, people are facing the same problems everywhere in Latin America.
Various international initiatives claimed to offer a solution, or at least change the situation for the better. However, in most cases, these initiatives resulted in centralized trade agreements that weren’t beneficial for the majority of the population. The ones who benefit the most from these agreements are the large corporations. Small and medium-sized enterprises, on the other hand, remain almost completely left out.
Dr. Juan Pablo Vazquez Sampere has compared the situation Latin America is in now to the situation China was in before the development of e-commerce. Dr. Vasquez is one of the co-founders of UTEMIS, but he is also a known figure in the field of disruptive innovation. In an article published in Harvard Business Review, he wrote about Alibaba and showed how the development of e-commerce empowered small and medium-sized enterprises in China.
How exactly did this happen? When large e-commerce platforms like Alibaba appeared in China, they provided a secure platform where smaller businesses could expand their customer base and collaborate with each other. These platforms allowed business to use escrow accounts which minimized the risk of theft or fraud. Furthermore, small businesses now had access to a huge market and new opportunities that were unimaginable before the development of e-commerce.
China is now the fastest-growing consumer market in the world. With their GDP steadily rising, they have succeeded in virtually eliminating poverty, according to United Nations data. This kind of revolution hasn’t happened yet in Latin America, but it definitely needs to happen. However, government interventions, market inefficiencies, and widespread corruption hinder the economic growth.
This is where UTEMIS comes into play. It’s a new business model with an aim to bring economic empowerment to the people. Inspired by the success of Chinese e-commerce companies, the developers of UTEMIS have created an e-commerce platform enhanced by the blockchain technology. UTEMIS allows for all the trades to be documented on the blockchain, so if a business offers low-quality or fraudulent services, anyone will be able to see it. This system effectively decentralizes business reputation which allows companies to conduct business based on a new level of trust. Just like with Chinese e-commerce companies, all transactions are protected by escrow, so the level of risk involved is minimal.
Furthermore, UTEMIS allows companies from all over Latin America to conduct business with each other as if they were in the same country. They will now have a much wider range of opportunities for collaboration and business growth. This way, UTEMIS creates a space for small and medium-sized enterprises which provide high-quality services to stand out based on reputation.
The development of blockchain technology created an opportunity to decentralize international trade. This new, decentralized architecture brings the power back to the people. Consumers now have a new way of doing business securely, and they don’t have to rely on their governments to protect them anymore. UTEMIS is here to create the change Latin America desperately needs. With a completely decentralized system based on business reputation, UTEMIS brings new opportunities consumers and small businesses in Latin America.
For more visit: