Latin America’s cryptocurrency market on the rise

Cryptocurrency and its underlying blockchain technology are on a meteoric rise in Latin America. According to a study published last year by Statista, one of the world’s leading statistics portals, the Latin American region holds the largest number of cryptocurrency users in the world.

Brazil, Colombia, Argentina, Mexico, and Chile all fall within the top 10 cryptocurrency countries. Meanwhile, the United States, the United Kingdom, Australia, and France were closer to the bottom of the list.

Much of Latin America has been wracked by financial chaos in recent years. Amid unemployment and falling reserves, Argentina’s inflation rose 53.8% in 2019. Rising prices also plagued Brazil, wherein 2015 inflation increased to the highest rate in 13 years. Despite the risk and volatility of cryptocurrency, digital assets have become a viable alternative to shaky national currencies.

Similarly, cryptocurrency offers a quick and secure method to send remittances. In recent years, migrants from Latin America and the Caribbean have been sending a record amount of money to their home countries.

Platforms like Traxalt, allow users to transfer funds to family or friends internationally via blockchain technology. Traxalt has become the second most important digital asset in the Stellar blockchain, facilitating more conversions and trust amongst cryptocurrency users. As millions of Venezuelans flee to make new lives in other countries, Colombian company Valiu created a blockchain-powered system that transfers remittances to Venezuela in less than one hour and in a way that prevents loss or theft.

A Traxalt spokesperson states that “cryptocurrencies have not been hit so hard financially by the current pandemic, mainly because they are not regulated by any foreign currency controlling entity. This is why it is much more frequent to find goods and services offered in exchange for cryptocurrencies, not only through digital channels but in physical stores.” On the other hand, the World Bank reports that 55% of adults in Latin America own a mobile phone and have access to the internet, 15% more than the average in developing nations. A large unbanked population with access to WiFi makes diving into cryptocurrency far easier than opening a checking account.

Latin America represents a breakthrough region for the cryptocurrency and blockchain industry and it is ready for an even greater growth.

Brazil, Colombia, Argentina, Mexico and Chile all fall within the top 10 cryptocurrency countries. Meanwhile, the United States, the United Kingdom, Australia and France were closer to the bottom of the list.