Chainalysis: Latin Americans are actively using cryptocurrency

The region is now the seventh largest crypto economy in the world.

The reason for this is the rapid inflation in the region and the instability of local currencies. For example, the economic crisis in Venezuela has led to a huge rise in prices and a complete devaluation of the bolivar. Because of this, citizens have begun to favor digital currency, especially steiblecoins, which are used for transfers. According to Chainalysis, 92.5% of all Venezuelan cryptocurrency activity takes place on centralized exchanges.

Brazil, Argentina and Mexico also ranked in the top 20 of the Global Cryptocurrency Adoption Index. To protect their savings from devaluation, citizens of these countries often transfer their paychecks into USDT or USDC stablecoins. Argentina, according to Chainalysis, again leads the region in terms of cryptocurrency transaction volume. For the year, this figure reached $85.4 billion.

But the demand for stablecoins among Brazilians is somewhat lower than among residents of other Latin American countries. They more often choose bitcoins and altcoins for trading and long-term investments.