NEW YORK – September 13, 2022 – Today, Paxos, the leading regulated blockchain infrastructure platform, published “What’s Driving the Immense Growth of Crypto in Latin America?”, a new white paper that delves into the consumer and market trends fueling adoption of digital assets in the region. Following the successful integration of crypto into numerous Latin American fintech apps like Mercado Libre, Nubank, PicPay and others, Paxos sought to understand the drivers behind the region’s robust embrace of cryptocurrency. Crypto usage in Latin America has increased by 1370% from 2019-2021, according to Chainalysis.
Paxos’ findings include the primary motivators of crypto adoption in Latin America: a desire for greater access to the US dollar as a hedge against inflation, easier and less expensive cross-border remittances and a general movement away from traditional banking towards new service providers. In addition, the availability of fintech apps and penetration of internet technology via cell phones, digital wallets and gaming consoles is lowering financial barriers for under-banked or unbanked individuals. Greater connectivity to the financial system is further accelerating adoption of stablecoins and crypto, whether for payments, international remittances, investments or for a store-of-value.
“We discovered an array of socio-economic, technological, regulatory and cultural forces converging over the past two years to propel crypto further into the mainstream financial system in Latin America,” observed Michael Coscetta, Head of Revenue at Paxos. “What’s most exciting is the potential for digital asset markets to increase the spending and saving power of millions, thus helping drive innovation.”
Paxos concluded the future appears promising for continued growth of Latin America cryptocurrency markets, catalyzed by expanding awareness of the asset class, the desire to break from traditional banks, the popularity of digital wallets, the continuing advancement of internet access and persistent economic instability.
“What’s Driving the Immense Growth of Crypto in Latin America” was created with the support and expertise of:
- Bruno Balduccini, partner at Pinheiro Neto Advogados, Brazil
- Gloriana Carballo, fintech consultant at Impesa, Costa Rica
- Wences Casares, CEO of Xapo, Argentina
- Dolores El Jaouhari, product manager at Prex, Argentina
- Florence Grassl, product innovation & marketing manager at Multimoney, El Salvador
- Ernesto Leal, payments and product head at Grupo Gente, Costa Rica
- Agustin Paez, growth marketing manager at Prex, Argentina
Paxos is the leading regulated blockchain infrastructure platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.
Paxos uses technology to tokenize, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions like PayPal, Interactive Brokers, Mastercard, Mercado Libre, Nubank, Bank of America, Credit Suisse and Societe Generale. Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a global approach to modernizing the financial system.