- Latin America’s crypto adoption has grown 40% compared to last year.
- Chainalysis named 3 key use cases in Latin America’s crypto adoption.
- These use cases include storing value, sending remittances, and seeking alpha.
The Chainalysis 2022 Crypto Geography Report of Latin America revealed that the crypto adoption and Bitcoin transaction volume in Latin America both grew 40% compared to last year.
Latin America is currently the seventh-largest crypto market in our index this year. LATAM is also the home to 5 of the top 30 countries for this year’s crypto index.
In a video, Chainalysis’ NA & LATAM Account Executive Daniel Cartolin discussed the insights from the 2022 Geography of Crypto Report. He said the citizens of LATAM countries received $562 billion or 9.3% of overall crypto from July 2021 to June 2022.
According to the firm’s LATAM analysis for on-chain activity, Chainalysis identified three key use cases that influenced the crypto adoption in Latin America: storing value, sending remittances, and seeking alpha.
The International Monetary Fund discovered that the five largest Latin American countries currently have a combined 12.1% inflation rate, a 25-year high, losing half of their fiat currency values over the last year. The USD-pegged crypto, such as stablecoins, has been the ideal choice for these inflation-ruined regions to acquire.
Latin America’s crypto remittance adoption has been rough but was swift all throughout the year. Notably, the first country to make Bitcoin its legal tender El Salvador processed $52 million in BTC remittances from January to May. Cartolin said:
“Users in countries with weaker economies tend to rely on crypto for remittances, and if the inflation is high, for savings preservation.”
The lead analyst stated that the largest and most advanced countries in Latin America are likely to adopt crypto for profit. More developed countries, like Brazil, use cryptocurrencies as a form of investment.
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