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The Latin American countries that bet the most on cryptocurrencies

Cryptocurrencies are a technological and economic revolution that brought the concept of blockchain to the world.

Person who trades with the cryptocurrency bitcoin

Countries of the Latin American region have presented a growth of digital investments of more than 100% between 2020 and 2021. Photo: Rawpixel

LatinAmerican Post | Rafael Ricardo Lopez Marti

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Leer en español: Los países de Latinoamérica que más le apuestan a las criptomonedas

Most Latin American countries have presented upward trends in investments and in the use of cryptocurrency exchanges, highlighting countries such as Colombia and Argentina with a growth of digital investments of more than 100% between 2020 and 2021, according to Milagros Aguirre, Corporate Marketing Specialist for the Comscore study. However, in April 2021, the main social networks in the world registered 95 thousand mentions on the subject of cryptocurrency exchanges, Twitter occupying 90%, which represents an increase of 30%.

On the other hand, in recent months the platforms reflect the behavior of visitors, being similar among the countries of Argentina, Mexico, and Brazil. In Brazil, the access method is mobile-only (mobile) generating 83% of users and daily consumption of 42 minutes, on the other hand, in Argentina the access method is through desktop only (desktop) creating 56% users and daily consumption of 10 minutes.

What are the Latin American countries that have invested in cryptocurrencies?

In a difficult economic climate caused by the health crisis of COVID-19 and facing the loss of legitimacy of traditional forms of investment, some countries began to lead in the cryptocurrency trade. However, Bitso positions Latin America as an important market, the countries that use cryptocurrencies the most in Latin America are Brazil and Colombia with 18%, Argentina with 16%, Mexico with 12% and Chile with 11%.

On the other hand, Latin America has sent 25,000 million dollars in cryptocurrencies and has received 24,000 million dollars throughout the period under study, this means that the region represented between 5% and 9% of all the activity in cryptocurrencies in any month.

El Salvador

Salvadoran President Nayib Bukele approved the Bitcoin Law and it will come into effect in less than 90 days and contains 16 articles, being hastily approved, according to the Central American Institute for Fiscal Studies (ICEFI). The regulations make El Salvador the first country in the world to give cryptocurrencies legal tender. However, this has generated conflicting opinions, mainly the risk that the country will become a tax haven that encourages money laundering and tax evasion.

It may interest you: El Salvador, the first country with Bitcoin as legal tender

On the other hand, the government requested technical assistance from the World Bank (WB) for the development of a regulation that would be a complement to the Bitcoin Law, approved last week by Parliament. However, the World Bank cannot support given the environmental and transparency deficiencies.

Venezuela

According to the Association of Certified Financial Crime Specialists, a complete analysis called Chainalysis for Latin America is carried out on regional cryptocurrency patterns, based on the Geography of Cryptocurrency Report, where it reveals that Venezuela ranks third place in the world to adopt cryptocurrencies, first is Ukraine and Russia, this due to all the economic problems it faces and the index of superinflation. Before the normalization of the dollar in the Venezuelan daily economy, cryptocurrencies were the catalyst of all these problems that generate hyperinflation.