Crypto Adoption in Latin America Surges Amid Inflation Woes

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One of the largest regions on the plan­et for cryp­to adop­tion growth is Latin Amer­i­ca. This is large­ly due to eco­nom­ic insta­bil­i­ty, failed mon­e­tary poli­cies, and ram­pant infla­tion devalu­ing local currencies. 

In its Cryp­to Land­scape in Latin Amer­i­ca report for the sec­ond half of 2023, Mex­i­can cryp­to exchange Bit­so revealed that Bit­coin and sta­ble­coins dom­i­nat­ed local mar­kets’ buy­ing behavior.

Crypto Adoption Surge in Latin America 

It revealed that Bit­coin made up around 53% of the aver­age port­fo­lio com­po­si­tion. How­ev­er, dig­i­tal dol­lars were the fastest-grow­ing cryp­tocur­ren­cies in the region.

The two lead­ing sta­ble­coins, USDT and USDC, com­prised 26% and 17% of the aver­age port­fo­lio of Argenti­na and Colom­bia users, respec­tive­ly. Unsur­pris­ing­ly, this is dri­ven by the eco­nom­ic envi­ron­ment and infla­tion­ary pres­sures in each country.

Buy­ing behav­ior reflects the same trend regard­ing the pre­ferred cryp­tos. Bit­coin and sta­ble­coins made up 68% of the total cryp­tos acquired in the sec­ond half of 2023. 

How­ev­er, Argenti­na was the excep­tion, with dig­i­tal dol­lars com­pris­ing 60% of pur­chas­es, com­pared to just 13% for Bit­coin. Infla­tion in Argenti­na has surged to 211% and is set to top 250% this year, accord­ing to the Organ­i­sa­tion for Eco­nom­ic Coop­er­a­tion and Devel­op­ment. Fur­ther­more, Bit­coin prices hit record highs recent­ly against the Argen­tine peso. 

In Mex­i­co and Brazil, the pref­er­ence for Bit­coin was greater, with 40% BTC vs 28% for sta­ble­coins and 35% vs 19%, respec­tive­ly. In Mex­i­co, XRP was a rel­e­vant part of the aver­age port­fo­lio, com­pris­ing around 8% of the total aver­age holdings. 

Crypto composition by country. Source: Bitso
Cryp­to com­po­si­tion by coun­try. Source: Bitso

Brazil is the only coun­try in which meme­coins and alt­coins were a rel­e­vant part of the port­fo­lio, it report­ed. Brazil­ians have, on aver­age, 17% of total hold­ings in alt­coins vs 11% regionally. 

More­over, they tend to favor Shi­ba Inu (SHIB) but are not keen on Ethereum (ETH) com­pared to oth­er Latin Amer­i­can countries. 

Read more: 7 Ways To Han­dle Retire­ment With Increas­ing Inflation

The report also not­ed that cryp­to hold­ers in Latin Amer­i­ca remained stead­fast dur­ing the bear market. 

“The data sug­gests that big, long-term cryp­tocur­ren­cy hold­ers have con­tin­ued to hold despite cryp­to indus­try con­cerns and issues raised in 2022 and the begin­ning of 2023.”

Brazil and Argentina Lead the Way 

Women’s cryp­to adop­tion is also increas­ing across Latin Amer­i­ca, though still low­er than men’s. Adop­tion rates tend to rise with age for women, it noted.

Colom­bia and Brazil have the most bal­anced gen­der dis­tri­b­u­tion at 33% and 31% women, respectively.

Over­all, coun­tries like Brazil, Argenti­na, and Mex­i­co are among the top 20 in the world for cryp­to adop­tion, it not­ed. How­ev­er, it report­ed that Colom­bia had the high­est growth in reg­is­tered users for the exchange in 2023. 

Bit­so also described the region as one with “high index­es of unbank­ing and unequal access to finan­cial ser­vices,” and concluded: 

“Latin Amer­i­ca exhibits remark­able enthu­si­asm for cryp­tocur­ren­cies, mak­ing it a vibrant and dynam­ic region in the cryp­to space.”

Dis­claimer

In adher­ence to the Trust Project guide­lines, BeIn­Cryp­to is com­mit­ted to unbi­ased, trans­par­ent report­ing. This news arti­cle aims to pro­vide accu­rate, time­ly infor­ma­tion. How­ev­er, read­ers are advised to ver­i­fy facts inde­pen­dent­ly and con­sult with a pro­fes­sion­al before mak­ing any deci­sions based on this con­tent. Please note that our Terms and Con­di­tionsPri­va­cy Pol­i­cy, and Dis­claimers have been updated.

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