News Americas, NEW YORK, NY, Fri. July 8, 2022: Latin America, namely Argentina and El Salvador, has had severe financial troubles for decades. Latin American countries have turned to Bitcoin and the blockchain, cut out from the global economic system and with nowhere to turn to fill the gaps in their economies. El Salvador went furthermost by legalizing Bitcoin as legal tender in place of the American Dollar. Many criticized it as a controversial decision, but the country is doing well over half a year later.
And it’s not just El Salvador. Crypto adoption in Latin America in 2022 is on the rise. From 2019 to 2021, the overall adoption of cryptocurrencies rose by a whopping 1,370%. In times of uncertainty, the youth is turning to the crypto market, which is almost widespread across Latin America.
El Salvador is the world’s first country to switch to Bitcoin entirely. President Nayib Bukele is a man on a mission – he’s always buying the dip, and even when Bitcoin’s price is highly volatile, he’s holding his position firm. You can do anything with Bitcoin in El Salvador these days. From playing Atlantis casino video poker games to buying fish in local markets, it’s a glimpse of what global Bitcoin adoption may look like in the future.
Of course, not everyone is thrilled by the move, especially financial institutions such as the IMF and El Salvador’s central bank. But, for over 6 months, the experiment has been doing well, and many will use El Salvador as the blueprint in the future.
The instability of Argentina’s peso has pushed the country’s youth to switch to crypto. In the past, Argentinians stockpiled their assets in USD or EUR. However, crypto is the leading choice right now, with the flow reaching over $100 billion in 2021. Things are supposed to go higher from here, making Argentina another potential Latin America hotbed for Bitcoin and cryptocurrencies.
Surprisingly, the country has yet to introduce any kind of crypto regulation. Still, Argentina’s residents are very interested in mining crypto since electricity is pretty cheap, especially in Patagonia. While prices are rising and mining’s getting more expensive, it will be interesting to see what the government does with crypto.
Brazil is Latin America’s largest economy and the most significant crypto market. In mid-2022, the market’s value is nearly $30 billion. It’s a powerful hub for crypto-related venture capital and home to Latin America’s top cryptocurrency exchange, Mercado Bitcoin.
A regulatory framework is coming soon, with Congress eager to recognize digital assets like Bitcoin. The bill should also introduce rules for day-to-day crypto use, with providers subject to strict guidelines. It’ll be interesting to see how Brazil develops this framework in the future.
When countries officially pass cryptocurrency bills, they primarily refer to Bitcoin. In Panama, the legislation recognized eight cryptos:
- XDC Network
- XRP Stellar
Panama loves crypto and is not afraid to show the whole world. These cryptocurrencies can also be used by private businesses and for civil matters, making the country truly unique.
According to estimates, over 100,000 Cubans use cryptocurrencies daily. Now many of you are probably saying that’s not a huge number. But, keep in mind that mobile Internet went live in Cuba just a few years ago. For a country that has just realized the massive potential of the Internet, that’s a considerable number.
The US embargo on Cuban economic activity is the main reason why virtual assets are so popular. In April 2022, the Central Bank of Cuba approved the use of some crypto providers. Cryptos are also allowed for personal use, making Cuba heaven for crypto enthusiasts.