As noted in a previous post, cryptocurrency and blockchain technology adoption are ramping up in Latin America, with rapid growth acceleration projected for 2023 and beyond. However, until now, the underlying drivers for this have not been fully realized, especially by business leaders outside the region. Now with a newly released white paper dedicated to uncovering the reasons for crypto’s popularity in Latin America, Paxos has released its findings, perhaps bringing to light some surprises.
With the help of a group of prominent business leaders from within the region, Paxos provides an insider’s view of the growth taking place, as well as helpful data and key takeaways.
Multifaceted Reasons for Latin America’s Crypto Adoption
It would make sense that a region such as Latin America, with numerous countries, cultures and an uneven range of regulations to adhere to, would look to adopt a new digital currency for a variety of reasons. What may be a bit more surprising is how the everyday activities of the people in the region are shaping national and intranational trends. For example, many Latin Americans are already using stablecoins frequently, far ahead of citizens in other regions where stablecoins are only beginning to get consumer-level traction. This forces decisions to be made at local, national and regional levels, which in turn pushes forward the availability and use of digital assets region-wide.
While rationales for the high levels of crypto usage in Latin America might echo those of other regions on a smaller scale, they may also expose the challenges of growth in a generally underregulated landscape. As these challenges prompt more national governments in the region to view the rapid adoption taking place through a regulatory lens, the results may prove instructive.
What We Can Learn From Latin America
From Paxos’ white paper on Latin American crypto adoption, we know one thing is clear: cryptocurrencies are riding a wave of opportunity in the region, enabling greater financial inclusion for millions of end users. This may be reason enough for countries within the region to work through current challenges to forge a path forward, ultimately enabling more secure financial connectivity in the region – while potentially becoming a model for the rest of us.
Want to understand how business leaders are thinking about crypto’s growth in Latin America?