A blockchain analytics firm from New York called Chainalysis published new research that contains many interesting details. According to Chainalysis, the volume of crypto transactions between South America and Asia surpassed $1 billion in 2019.
It is worth noting that, the study “Latin America Mitigates Economic Turbulence with Cryptocurrency”, analyzed trends in Latin America between the July 2019 and June 2020. Notably, Latin America consists of 20 countries and 14 dependencies.
Based on the information provided by Chainalysis, due to problems regarding the banking access issues, the need for remittances resulted in unique patterns of cryptocurrency usage. Especially, when it comes to crossborder commercial-related transactions.
Interestingly, North America, as well as Western Europe, represent the biggest source of remittances to Latin America. However, transactions from East Asia lead the way when it comes to the volume of crypto transactions. Moreover, many of the transactions between Latin America and Asia are commercial transactions between companies.
Also, the New York-based company was unable to determine the single driving factor as there are differences across Latin America. It makes countries have different political and banking systems.
Blockchain analytics firm and main findings
Interestingly, in the case of Venezuela, person-to-person exchanges represent the driving factor. Also, a large professional market drives adoption in Brazil. Notably, a substantial commercial market drives adoption among Argentina, Paraguay, and Brazil as they trade goods, often imported from the People’s Republic of China.
The popularity of cryptocurrencies is growing in Latin America. For example, Bitso one of the biggest cryptocurrency exchanges in Latin America reached 1 million active users prior to its launch in Brazil.
This fact once more underlines the importance of cryptocurrencies in the region. As can be seen from the information provided by Chainalysis the number of crypto transactions surpassed $1 billion in 2019. It means people as well as companies are willing to use cryptocurrencies on a regular basis.
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