The Brazilian market is one of the largest in Latin America when it comes to investing or buying cryptocurrencies.
According to a report from blockchain platform Chainalysis, Brazil currently ranks ninth worldwide in the adoption of digital assets.
Argentina ranks 15th in this ranking, followed by Mexico, according to the Geography of Cryptocurrency survey.
Between July 2022 and June 2023 alone, Brazil received USD$85.3 billion in cryptocurrencies. Meanwhile, Argentina attracted a similar amount of USD$85.4 billion.
According to the survey, crypto-assets have been used in different ways in each region.
The Global Cryptocurrency Adoption Index measures the performance of different countries based on their use of different cryptocurrency services.
“To secure a position in the ranking, Chainalysis assigns a score between 0 and 1 to each country. The closer this number is to one (1), the higher the position,” explained Kim Grauer, Director of Research at Chainalysis.
While Mexico has used digital assets for international remittances, Argentina and Venezuela have done so to protect funds from deflationary chaos (both economies are shattered).
Brazilians, on the other hand, have been using cryptocurrencies as a form of investment, making that market more sophisticated than neighboring countries, according to Chainalysis.
Compared to the Argentine peso, the analysis shows that the real was the preferred currency to buy cryptocurrencies like altcoins and Bitcoin.
This suggests that the Brazilian market is more interested in long-term investment assets, while Argentinians tend to acquire a significant amount of USDT, pegged 1:1 to the US dollar.
“Latin America has the seventh-largest cryptoeconomy of all the regions we studied, only ahead of Sub-Saharan Africa, but not far from Middle East and North Africa, or East Asia and Eastern Europe. Its position compared to other regions has remained relatively stable over the past two years,” Grauer stated.
The publication points out that the Latin American crypto market is the seventh most active in the world. This represents 7.3% of all global crypto activity between July 2022 and June 2023.
The Mexican market has shown a significant trend towards the use of DeFi, far superior to that of other countries in the region, such as Argentina, Colombia, and Brazil.
Compared to other regions, Latin America has a strong institutional and professional market based on transaction volume.
Stablecoins dominate the business in Latin America. This makes sense with a population seeking to mitigate currency devaluation and remittance payments.
