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Latin America Sees 40% Growth in Crypto Adoption, Fuelled by Remittances

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VOC, Voice of Crypto, Altcoins primed for Breakout

Latin America recorded a 40% growth in adopting cryptocurrency in a recent survey. The survey conducted by Chainalysis reveals remittances play a crucial role in such growth. It also indicated an increased cryptocurrency adoption in a market where local currencies took a deep plunge.

Why Are Remittances Vital in Latin America

Latin America records a high percentage of remittances for several reasons. Owing to rapid industrialization, workers moved to urban places or other countries in search of work and higher wages. Naturally, with a higher income sending gifts to their family members was a common phenomenon. Hence, people living in Latin America often received such gifts from their kind living abroad.

While the tradition of sending remittances remains the same, the medium changed with the expansion of the crypto market. Workers can now send cryptocurrencies to their family members, recording a high adoption rate among them. No wonder the formal remittances market accounted for $ 150 billion in the country.

Dispersed Crypto Adoption in Latin America

While the survey by Chainalysis indicates an increased rate of crypto adoption in Latin America, conducted through remittances, such practices are not evenly distributed. The major reason behind the unequal distribution is still the ambiguity concerning cryptocurrencies and the lack of knowledge among people.

However, several countries, its government, and citizens have actively improved the crypto adoption rate. For instance, El Salvador’s President, Nayib Bukele, pledged to convert the country into a “Bitcoin Country” by accepting Bitcoin as a legal tender.

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On the other hand, Mexico saw a rapid increase in crypto remittances, recording several billion dollars towards it. Bitso, the largest and most popular crypto exchange firm, recorded payments worth $ 1 billion from the United States of America.

Latin America Prefer Stablecoins 

Latin America made it to the headlines for its struggle against inflation, like several Middle-East countries with highly devalued currencies. Argentina’s inflation by 79% and Venezuela’s inflation by 114% puts them in a worse position. Thus, these countries are now shifting to cryptocurrencies to reserve their value. They are also investing in stablecoins to overcome the rapid inflation with a bleak future.

Stablecoins are also widely gaining popularity in Latin America for two main reasons. First, they are easy to use, and second, they offer considerable relief to Latin American citizens amidst their current economic struggle. Thus, a recent record also shows that most citizens use Stablecoins to purchase items regularly. No wonder they serve as a better option than a devaluing currency.

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