Chinese telecom giant Huawei Technologies is reportedly studying the Latin American market for the launch of blockchain services, a region in which cryptocurrencies are gaining popularity.
Huawei’s blockchain products will likely be available in Latin America soon, according to Cointelegraph, citing an unnamed executive of the Chinese company.
Huawei’s arrival will pose a threat to IBM’s dominance in the region, where it controls a large share of the blockchain services market, having recently developed a platform for Brazilian banks to share transaction data.
In addition, Huawei is perceived as having far more expertise in the new technology than many of its international rivals.
Last year, the Chinese company launched blockchain-as-a-service, offering to help businesses create and manage their blockchain applications in the cloud at a very low cost.
The news gains significance against the backdrop of Latin America’s growing obsession with cryptocurrency, and governments in the region are under pressure to develop a legal framework for the digital currency.
In March of this year, the government of Argentina announced it would invest in as many as 40 blockchain projects over the next few years, while the country’s public transport agency has recently allowed people to pay for bus and railway tickets in bitcoin.
Meanwhile, the Chinese company is making deep inroads into Latin America’s ICT market, with many countries, including Brazil and Argentina, mulling the use of its technology for their fifth generation (5G) telecom networks.
In Brazil, the company is also gearing up to produce mobile phones.