Bitcoin Dominance in Latin American Crypto Holdings
- Bitcoin now represents over half of the cryptocurrency portfolios in Latin America, with Bitso reporting a 53% share in user portfolios.
- Economic instability, particularly in Argentina, has led to a significant rise in the adoption of stablecoins, with digital dollars being preferred over other cryptocurrencies.
- The cryptocurrency market in Latin America is witnessing growing female participation, especially in older age groups, marking a shift towards greater financial inclusivity.
In the “Crypto Landscape in Latin America: Report H2 2023” released by Bitso on February 8, 2024, they reported their observation of Bitcoin dominance in Latin America. The report, coinciding with Bitso’s 10th anniversary, marks the beginning of a semiannual series designed to delve into the dynamics of cryptocurrency adoption in Latin America. It presents an insightful “x-ray” of crypto adoption across Argentina, Brazil, Colombia, and Mexico, offering a detailed look at demographic trends, user preferences, and country-specific crypto utilities.
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Bitcoin’s Dominance in Latin America and Specific Trends
Bitcoin dominance in Latin America is reported by Bitso, noting that it now makes up 53% of the average portfolio on Bitso, surpassing the global average of 50.4%. This signifies Bitcoin’s strong presence in the region, although variations exist, notably in Argentina. In terms of purchasing behavior during the latter half of 2023, Bitcoin accounted for 38% of acquisitions, while stablecoins pegged to the US dollar comprised 30%.
In Argentina, the economic and political climate has led to a unique trend in cryptocurrency usage. With the challenges of inflation and currency devaluation, a significant shift towards digital dollars is evident. Data from Bitso indicates that 60% of crypto asset purchases were in USD, overshadowing Bitcoin’s 13% share in the same period.
Brazil stands out in the Latin American region, and globally, for its adoption of cryptocurrencies, ranking ninth worldwide. The Brazilian market is characterized by its diverse crypto portfolio. While a variety of altcoins and memecoins are popular among Brazilian users, Bitcoin continues to hold a strong position, representing 58% of the total crypto holdings.
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Additional Country Insights
Colombia’s crypto landscape is marked by rapid growth and diversity. Bitso has seen a remarkable 60% increase in registrations from Colombia, highlighting the burgeoning interest in the region. Stablecoins, in particular, have garnered significant attention, comprising 31% of all digital currency purchases. Additionally, Colombia leads in gender diversity within the crypto space, with women representing a substantial 33% of Bitso’s user base.
In Mexico, the crypto market is witnessing significant growth and recognition. The country recently made its way into the top 20 globally for cryptocurrency adoption, with an 18% increase in Bitso platform usage year-on-year. Bitcoin plays a central role in Mexican portfolios, accounting for 53% in 2023 and being the choice for 40% of purchases. Unique to Mexico is the notable presence of XRP, driven by its utility in US-Mexico transfers.
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Key Takeaways
In the closing remarks of the “Crypto Landscape in Latin America: Report H2 2023,” Daniel Vogel, CEO and co-founder of Bitso, offers perspective on the evolution of the cryptocurrency market over the past decade. Vogel notes the significant growth of the industry, from a modest market cap to a substantial figure, reflecting on the broader impact and development of the crypto market.
While the report sheds light on Bitso’s role in the regional crypto market, it also brings to the forefront the larger narrative of cryptocurrency’s growing influence in Latin America. It serves as a snapshot of the current state and potential future directions of the digital financial landscape in the region, emphasizing the need for continued innovation and adaptation to meet the varied needs of different markets and consumers.
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