2023-05-05 21:55:57
According to the most recent research from the Minsait Payments firm, 46% of banked people in Latin America are willing to buy bitcoin (BTC) and make payments with cryptocurrencies.
This is a trend that is becoming more and more visible in Latin America, a region where a group of countries are now beginning to stand out for which not much information was known regarding the status of adoption. It is the case of Honduras, Ecuador and the Dominican Republic, located among the first 10 with the highest interest in bitcoin in the last 12 months, according to data from Chainalysis.
The position of these countries is ratified in the Report on Trends in Means of Payments 2023, prepared by Minsait Payments with the collaboration of International Financial Analysts (AFI). A document that focuses particularly on Ecuador and the Dominican Republic due to the increase in payments with cryptocurrencies.
As the results of the research indicate, Ecuador is one of the Latin American countries where adoption has grown the most in the last year. This, taking into account that payments with cryptocurrencies already cover 15.8% of the Ecuadorian economy.
It is also pointed out that three out of ten Ecuadorians with an active bank account have bought cryptocurrencies in the last few months. Of this group of people, 20% say they will buy in the future and another 10.3% contemplate the possibility of doing so soon.
Interest is on the rise in the South American country even though restrictions on the use of bitcoin persist, since it is not authorized as a means of payment and even having sanctions established for this activity. A position that the Central Bank of Ecuador doesn’t seem willing to change, given the statements he offered to a local media. This, despite having announced in 2022 the creation of a bill for the sector.
Situation similar to that of Ecuador It happens in the Dominican Republicwith a significant increase in adoption and authorities warning the public regarding the “risks of using bitcoin”.
Specifically, a notable increase in the willingness of residents of the Caribbean island to make payments using cryptocurrencies is observed. There, 18% of banked Dominicans are determined to buy crypto assets, while 20% are evaluating it.
Bitcoin use is also increasing among Hondurans. Within the framework of the emergence of citadels and educational centers, the country is positioned in fourth place. There are already three circular economies, inspired by El Salvador, created in Honduras during 2022: Isla Roatán, Valle de Angeles and Bitcoin Valley.
Brazil and Argentina are the leaders, but there is progress in Central America
The statistics confirm that the regional leadership exercised by Brazilwhich has received more than USD 150,000 million in cryptocurrencies in a year; followed by Argentina (with close to USD 100,000 million), and Mexico (with regarding USD 50,000 million).
The top 10 too includes Colombia, Venezuela, Chile and Peru. This last country also stands out for the significant upturn in the use of cryptocurrencies in recent times. The same is true of Panama and Costa Rica, which are among the top 15 in the region.
A curious situation occurs in El Salvador. Although it is the first country in the world to adopt Bitcoin as legal tender, it is relegated to 16th place. CriptoNoticias has outlined the causes of low interest of the majority of the population of the country to use the cryptocurrency as a means of payment.
Cryptocurrencies are not seen as a means of payment in Latin America
Minsait Payments statistics indicate that the majority of Latin Americans (72%) see cryptocurrencies as an investment alternative, more than as a means of payment. The study shows that the volume of cryptocurrency payments comes mostly from online games, entertainment and digital services.
However, its use in citadels is not taken into account, an economic model that revolves around the pioneer of cryptocurrencies and that has become popular mainly in Brazil and Central America. They are locations where everyone pays with cryptocurrencies and businesses accept those payments through the Bitcoin Lightning network.
On this subject, the report says that in the region “the acceptance of payments with cryptocurrencies in conventional stores it is still in its infancy”since the belief that these are “niche payments” and even prohibited dominates.
For this reason, the trend in most countries is to link payments with cryptocurrencies to other traditional payment mechanisms, such as cards. Other more current methods linked to crypto assets, such as stablecoins, also tend to be used.
Linking cryptocurrencies to a conventional and widely accepted form of payment such as cards allows holders of digital assets to carry out transactions as they would with any other digital payment instrument.
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