The Growth of Cryptocurrency in Latin America: Trends and Opportunities in 2022

How cryptocurrency adoption is winning over the Latin American countries this year?

Latin American countries have turned to Bitcoin and blockchain, cut out of the global economic system and with nowhere to go, to fill the gaps in their economies. El Salvador went even further by legalizing bitcoin as legal tender instead of the US dollar. Many criticized this decision as controversial, yet, after more than six months, the country is doing well.

And it’s not just El Salvador. Cryptocurrency adoption in Latin America will grow over the 2022. From 2019 to 2021, the overall adoption of cryptocurrencies has grown by a whopping 1370%. In times of uncertainty, young people are turning to the cryptocurrency market, which is almost widespread in Latin America.

Macroeconomic landscape and adoption factors

After the surge of Omicron’s COVID-19 variant, 2022 business activity is finally moving forward. Latin America has faced major challenges caused by the pandemic, but it has also seen opportunities. According to the Economic Commission for the Americas and the Caribbean (ECLAC), the region will experience very modest growth compared to last year, estimated at 2.1%, in line with global economic forecasts.

Brazil, the largest economy in Latin America, is estimated to show the least growth at just 0.5%. Mexico is expected to grow by 2.9%, Colombia by 3.7% and Chile by 1.9%. There has been a recovery in 2021 driven by an increase in consumption, partially due to government aid. Remittances rose by 30%, further contributing to this recovery.

Internet penetration and crypto potential

With over 455 million current Internet users and higher growth projections than any other part of the world, Latin Americans are looking to modern technology solutions for financial inclusion. The region presents an open opportunity for companies to step in and innovate.

Remittances and financial access

For millions of Hispanics, cryptocurrency is a quick way to receive resources sent by relatives working abroad. Four countries in the region — Venezuela, Argentina, Colombia, and Brazil — rank among the top 20 for cryptocurrency activity, according to Chainanalysis.

Key drivers of cryptocurrency popularity

Crypto legislation and venture capital

Countries in the region are developing frameworks to support crypto use. Brazil, the largest crypto market in Latin America, is valued at $27.6 billion. It has also become a center for crypto-related venture capital with players like Mercado Bitcoin. In April 2022, Brazil’s Senate passed a bill regulating virtual assets.

Meanwhile, Argentina’s crypto usage is also surging due to currency volatility. In 2021 alone, $103 billion flowed through crypto. A growing number of companies now pay staff in crypto, with a 340% increase reported over the past year.

The role of Quppy in the region

The Quppy neobank entering the Latin American market marks an important step in the Quppy ecosystem development as it secures cross-border payments and strengthens financial flows between Europe and Latin America reuniting families, connecting friends, opening opportunities to local specialists.

Despite the fact that there is a significant number of national crypto and fintech projects, Quppy opens a lot of benefit to its regional customers especially by offering digital IBAN opening in euros, British pounds and US dollars and a service of this IBAN instant top up via the local bank account in a local currency.