Latin America’s Crypto influence continues to grow, but education is still needed for sustainable adoption

by Arthur · September 28, 2022

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Despite the bear market that has permeated the global economy since the start of 2022, crypto adoption has continued to grow, especially across emerging markets.

To this point, a study shows that while the value of most leading digital assets has been on the decline recently, the speed at which retail and institutional players have adopted crypto is higher than what was seen during 2019 pre-bull- the market.

Using metrics such as CeFi/DeFi (centralized/decentralized finance) usage and P2P (peer-to-peer) trading volume, the study concluded that individuals living in countries across Latin America, Southeast Asia and Eastern Europe currently invests the largest sums of cash savings into digital assets.

Latin America in particular has continued to show increasing usage, mainly due to rising inflation levels as well as a number of geo-social factors such as increasing political instability and lack of access to high-quality traditional financial services.

Adoption is poised to grow across Latin America – hhere’s why

A number of Latin American nations have continued to struggle with insanely high levels of inflation recently, with countries such as Venezuela and Argentina currently experiencing hyperinflation rates of 75% and 115% respectively.

Similarly, countries such as Brazil, Chile, Colombia, Mexico and Peru have also been plagued by similar problems – albeit on a smaller scale – forcing people living in these nations to adopt crypto-assets (such as Bitcoin).

Another reason why Latin Americans are turning to crypto is because of the political instability turmoil that characterizes the region. According to research studies, Latin America is currently one of the most unstable regions in the world (in the post-war era), with armed conflicts that will continue to grow in the future.

As a result, many people have adopted censorship-resistant digital assets that are difficult for public authorities to confiscate.

Finally, with the DeFi sector growing from a cumulative valuation of $800 million to over $500 billion over the past 30 months, more young Hispanics have begun using crypto protocols as a replacement for traditional financial institutions for a variety of reasons, including sending /receiving funds, deducting interest on their savings, etc.

Crypto ed – setting Latin America up for a bright economic future

Many experts believe that mass education is critical in promoting economic empowerment and stimulating mass adoption in Latin America. To this point, it is estimated that approximately 15% of the world’s supply of Bitcoin (BTC) is currently circulating across the region.

Despite this, however, education continues to be a major barrier to adoption. According to a recent report, 99% of Brazilian and Mexican crypto enthusiasts are ignorant of the basics of blockchain, DeFi, Web 3.0, etc., preventing them from harnessing the true power of this new technological paradigm.

That said, several educational initiatives currently exist across Latin America, each incorporating a slightly different approach to bringing more people into the cryptocurrency and blockchain ecosystem.

For example, the National Autonomous University of Mexico (UNAM) recently introduced a financial engineering specialization course that includes models on crypto and blockchain topics. Similarly, the government of Colombia announced the creation of several tools devoted to cryptocurrency education.

Many platforms have also emerged in recent times that allow users to seamlessly educate themselves about all things crypto.

Therefore, as we move into a future powered by decentralized projects, it is of utmost importance that crypto education continues to grow, especially in regions affected by economic and political turmoil.

Adoption will continue to grow, figures suggest

Statistical evidence shows that Latin America is leading the way in crypto adoption globally. This is best highlighted by the fact that in September 2021, El Salvador became the first country in the world to legalize the use of Bitcoin within its borders.

Not only that, after the move, President Naib Bukele continued to buy the flagship cryptocurrency, with the nation’s coffers currently holding 2,381 BTC.

Similarly, Brazil is considered to be one of the most important markets for Web 3.0 projects, with its population facilitating crypto transactions faster than any other country today.

To put things into perspective, Receita Federal, Brazil’s financial regulator, revealed that between January and November 2021 alone, the country’s residents traded $11.4 billion worth of stablecoins. – a calculation that was almost of the number recorded in 2020.

Furthermore, the country houses some of the region’s top crypto platforms, including Mercado Libre, an e-commerce company that currently operates an extremely popular exchange, and Nubank, a digital banking ecosystem that was able to gather over one million users for its crypto trading. desktop just a month after launch.

Finally, a recent study found that Latin Americans are the most positive about the future prospects of the crypto industry compared to any other region worldwide. In fact, earlier this year, a Bitcoin ATM was installed in the premises of the Mexican Senate.

Therefore, it will be interesting to see how the future of the crypto economy will play out in this region over the coming months and years.

Gabriela Reyes is a Spanish entrepreneur with a growing footprint in the blockchain scene both globally and in Spanish-speaking countries. Reyes’ highest profile launch to date, Lively Verse aims to use the immense power of media to raise mass awareness of blockchain and help companies and startups raise funds for their projects as well as give them exposure.

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