Cryptocurrencies are revolutionizing personal finances in Latin America. A recent study by Fluyez, one of the main exchanges in the region, reveals that 46% of users use them to save, 37% to trade and 16% to send remittances. The reason? The economic problems of each of the countries.
Savings in cryptocurrencies: escaping inflation
In many countries in the region, saving in the local currency is no longer a viable option. Inflation eats everything! For this reason, almost half of cryptocurrency users in Latin America see them as a safe alternative to protect their savings.
In countries like Argentina, where the value of the currency plummets, they are leading this trend. Saving in crypto is, for many, the only way to avoid devaluation and escape financial chaos.
Trading: quick profits with cryptocurrencies
According to the study, 37% of Latin American users are also using crypto for trading. Because? Cryptocurrencies are super volatile, and for some this is a golden opportunity to make quick money.
With the emergence of more platforms and exchanges in the region, trading is becoming more accessible. Countries like Brazil are already setting clear rules so that people invest more safely and without so many risks.
Remittances: send money without complications
16% of Latin users use cryptocurrencies to send remittances, something that is revolutionizing the way migrants send money home. No lines at the bank or high commissions. Cryptos make everything faster and cheaper.
El Salvador, which in 2021 adopted Bitcoin as legal currency, is strongly promoting this use. For those who need to send money abroad, cryptocurrencies have become a super convenient option.
Why is the use of cryptocurrencies growing in LATAM?
The economic crisis is, without a doubt, one of the key factors. With inflation skyrocketing in several countries, people are desperate to find safer alternatives to local currencies.
In addition, there is a serious problem of access to banks. Many people in the region do not have a bank account, but cryptocurrencies have opened a door for more people to participate in the digital economy without depending on intermediaries.
Challenges and opportunities for crypto in the region
Despite the boom, the path is not free of obstacles. Cryptocurrency volatility continues to be a problem for those seeking stability. And, in many countries, there are no clear regulations, creating uncertainty for both users and companies.
Still, crypto infrastructure is growing, and regulations in places like Brazil and Mexico are helping more people join the world more securely.
Recommendations for investors
For investors interested in the Latin American market, it is essential to understand the particularities of each country.
In economies with high inflation, cryptocurrencies like Bitcoin and stablecoins tied to the dollar will continue to be seen as havens of value. Investing in these areas can be a solid option to capitalize on the growing use of crypto as a savings tool.
On the other hand, investors should take into account the trading market, especially in countries like Brazil and Mexico, where local platforms are improving and attracting a new generation of traders.
The growth opportunities in the remittance sector are also notable. Projects that offer more accessible and economical solutions for sending remittances through cryptocurrencies could have a significant advantage.
Source: Ambito
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