In accordance with Kim Grauer, Director of Researchon Chainalysis, “In 2022 Latin America saw a 40% increase in cryptocurrency adoption compared to 2021, this means that there is a growing interest among Latin American citizens to join the crypto world. Among the most important findings of the Geographic Report, is that the three main drivers of cryptocurrency adoption in the region are saving money, sending remittances and speculative investment. As crypto assets evolve and the needs of Latin American users change, it will be interesting to see what use cases emerge to address these needs.”
In Argentina over 31% of retail crypto transaction volume comes from the sale of stablecoins, compared to just 26% from Brazil and 18% from Mexico. These stablecoins – USDT, USDC, and USDD especially – have become popular in Argentina for three main reasons:
- They are pegged to the US dollar, which is the currency of choice for many Argentines;
- They are digital, and therefore easily accessible on multiple devices;
- There are no purchase limits, which means Argentines can convert any number of pesos into stablecoins.
“Argentina has become one of the most active blockchain communities in all of LATAM. It also has great potential to expand its cryptocurrency ecosystem as a growing number of people are eager to learn more about investing in digital assets,” said Dan Cartolin, Account Executive for North and Latin America at Chainalysis.
While Argentinians can’t get a better stablecoin currency exchange rate than the blue dollar, it does at least bring some sense of stability once converted. “Argentina is facing year-on-year inflation rates of 114% and 79%, respectively, which means that its currency has lost about half of its value in the last twelve months. Argentines use cryptocurrencies for security, because they are a good digital alternative for saving physical dollars”concluded Kim Grauer.
In this sense, the company estimates that the 31% of retail transaction volume It comes from the sale of these coins on digital platforms, such as exchanges that operate in Argentina.
Also Venezuela
According to the study, Venezuela -where inflation and economic crisis has been driving the adoption of cryptocurrencies for a few years – keeps growing the volume of money that is traded with these assets.
So far this year in the Caribbean country there have been traded $37.4 billion in digital assets. This is 32% more than last year, when $28.3 billion in cryptocurrencies were moved in Venezuela.
The 34% of all volume of retail and small transactions in Venezuela consisted of the exchange of stable coins. This is “more than any other country in Latin America mobilized,” explains the analytical company. Also remember that Venezuela does not appear in the Chainalysis Global Adoption Index due to lack of official data.
“This aligns well with the store of value thesis behind the popular adoption of cryptocurrencies in Venezuela,” says Chainalysis.
Source: Ambito
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