While El Salvador may dominate the information cycle for a while, it’s important that entrepreneurs and specialists listen to the exploding crypto scene throughout Latin America. The current Blockchain LatAm Report 2021 by Sherlock Communications revealed fascinating insights about crypto adoption and resistance in various booming economies.
The king coin reigns
Diversifying funding portfolios was the top motivator for Latin Americans to put money into cryptocurrencies. According to the report, Bitcoin was probably the most well-known cryptocurrency throughout the area. Ethereum and Litecoin got here in second and third, respectively. After El Salvador, Colombia had probably the most variety of Bitcoin ATMs in Latin America, with approximately 50 locations.
Brazilians have been the most supportive of El Salvador’s Bitcoin adoption, with 48% of survey respondents expressing that they wished Brazil to undertake the identical method. There are additionally round 1.4 million registered crypto customers in Brazil.
According to the Useful Tulips information gathered from P2P exchanges Paxful and NativeBitcoins, Venezuela was the top country in Latin America for cash transfers.
Meanwhile, the blockchain report by Sherlock Communications stated,
“Venezuela is acknowledged by the University of Cambridge because the Latin American nation which contributes most to the Bitcoin hashrate, that means that there’s a certain quantity of computing energy generated within the nation.”
Across Argentina, Brazil, Chile, Colombia, and Mexico, “three out of 4 folks agreed that financial downturns have been probably to have an effect on their curiosity in digital currencies.”
Eyes of regulators
Governments throughout Latin America have differing views on cryptocurrencies and their regulation. In Costa Rica, cryptocurrencies aren’t centrally regulated however are a “legitimate means of payment.” Mexico too has a vibrant fintech scene, the place cryptocurrencies are digital property which might be used for funds.
Moving into South America, the Argentinian authorities taxes revenue earned from the sale of digital currencies at 15%. In Brazil, a “regulatory sandbox” has allowed crypto innovators to work with the Brazilian Securities and Exchange Commission (CVM). Crypto ETFs are fashionable, however tax guidelines apply to capital positive factors.
Despite Binance coming underneath the Brazilian regulatory radar, crypto exchanges throughout Latin America noticed widespread development this 12 months. However, the Chilean Supreme Court confirmed that banks had the fitting to shut down the accounts of crypto exchanges.
Not all Latin Americans greeted crypto improvement with optimism. Out of the non-crypto customers surveyed in Brazil, 42% expressed issues about money security. Meanwhile, 40% of non-crypto customers surveyed in Mexico cited a lack of knowledge. Finally, 44% of non-crypto customers surveyed in Colombia stated they didn’t have the money to invest. The report additionally noted that crypto rejection grew to become extra widespread in Argentina this 12 months.
What is the takeaway for entrepreneurs hoping to enter the Latin American market?
The evaluation by Sherlock Communications stated,
“…one of the simplest ways to enhance Latin Americans’ belief in cryptocurrencies is to make literature on the topic extra broadly accessible.”