According to digital marketing and public relations agency Sherlock Communications, Latinos continue to rely on cryptocurrencies to protect their value from inflation.
Despite all the obstacles experienced in 2022, cryptocurrencies still allow Latin Americans to protect their assets from rising inflation in the region. This is indicated in the latest edition of the blockchain report published by the Sherlock Communications agency to assess the state of the crypto industry in Latin America.
According to the agency, there are many reasons why cryptocurrency adoption continues to grow steadily among Latinos.
In addition to being a store of value, cryptocurrencies also offer people an alternative to economic measures that governments may impose, especially in financially unstable countries, the agency said.
In its Blockchain Latin America 2023 report, Sherlock Communications assessed the current situation of the crypto industry in 21 countries in the region.
Cryptocurrencies, a store of value for Latinos
Although the cryptocurrency industry has faced several obstacles in recent years, it remains attractive to a large part of the world's population.
In the specific case of Latin America, the public relations and digital marketing agency highlights that macroeconomic changes, the introduction of central bank digital currencies (CBDC), regulatory advances and massive institutional entry have increased the attractiveness of cryptocurrencies among Latin Americans.
According to data collected by the agency, one of the most compelling reasons why Latinos continue to invest in cryptocurrencies is to Protect your assets against inflation and financial instability.
Currently, 11% of Latinos who participated in the Sherlock Communications survey said they have investments in crypto assets, most of them for this purpose. However, the survey also revealed that there are other reasons why the adoption of cryptocurrencies in the LATAM region has grown.
For example, the 46% of Latinos said they would invest in cryptocurrencies , the a way to save money for the future. 40% said they would invest in cryptocurrencies for supplement income, while another percentage indicated interest in cryptocurrencies as an alternative to diversify their portfolios of investment and, also, for manage your money better.
In the last 12 months, Latinos' adherence to cryptocurrencies and blockchain-based services has increased, Sherlock Communications noted, although more slowly compared to previous years.
Companies see new opportunities for growth
Businesses in Latin America have also significantly embraced cryptocurrencies and blockchain technology.
According to the agency, the digital asset industry is offering new opportunities for companies to grow and expand to a broader audience, in addition to providing global mobility and security for their assets.
The agency also highlighted the interest of crypto mining companies in the LATAM region, to establish new mining operations, in countries such as Paraguay, which can be sustained with renewable energy and affordable rates.
El Salvador, Brazil, Argentina, Colombia and more
Most Latin American countries have been moving forward, at their own pace, when it comes to cryptocurrencies.
The most prominent ones today are: El Salvador Street y Brazil, which are creating regulations that are friendly to the development and growth of the cryptocurrency industry and which also have populations that are very receptive to these digital assets.
It should also be remembered that El Salvador became the first country in the world to adopt Bitcoin as legal tender in 2021. According to the agency, this has opened up a wide range of possibilities for both the country and the region. Likewise, in its 2021 report on blockchain, Sherlock Communications noted that El Salvador had become a very interesting case and example to watch.
Other countries like Argentina, Colombia, Ecuador y Mexico They also stand out in the recent report agency and are among the top 30 countries in the world in terms of cryptocurrency adoption.
In Argentina, specifically, cryptocurrency adoption rates have risen exponentially, with more than half of citizens surveyed stating that they rely on crypto assets, such as Bitcoin and stablecoins, to save money, supplement their income, and protect themselves from the financial instability experienced in the country.
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