Cryptocurrencies in Argentina and Brazil
Cryptocurrencies in Argentina:
High inflation leads the population of Argentina to seek help in cryptocurrencies.
Since 2016, Argentina has been engaged in a constant war against inflation. Caused by various factors such as lack of confidence in the central bank or excessive government spending, the devaluation of the Argentine peso has negatively impacted the purchasing power of citizens.
This put 37.3% of the population below the poverty line, and many more saw their savings disappear. In this scenario, many Argentines have turned to Bitcoin (BTC) and cryptocurrencies as a way to protect themselves against inflation of 60% per year, despite the market being in the red for several months and the central bank banning financial institutions from operating with digital assets.
In an Americas Market Intelligence report, quoted by Reuters, it revealed that “cryptocurrency penetration” in Argentina reached 12%, double that of Peru, Mexico and other countries in the region.
On a broader scale, Argentina appears to be taking a cautious approach to digital asset regulation.
Cryptocurrencies in Brazil:
More than 30% of Brazilians already use cryptocurrencies.
The majority of active and passive owners (80% and 81% respectively), as well as curious consumers (77%), consider cryptocurrencies an innovation in finance.
Most also agree that they will become commonplace in 10 years, and in 5 years they will be a useful tool for sending money to friends and family.
Active owners also find it more advantageous to invest in cryptocurrencies than stocks (71%) and, generally speaking, engaged consumers see them as a way to build wealth and diversify their portfolios. Only 8% of those surveyed said they had learned about cryptocurrencies, but did not see them with good eyes.
However, active and passive Brazilians who already have cryptocurrencies are the most likely to be motivated to participate in this market, as they consider them the financial means of the future (38% and 44%) and a way to build wealth (35% and 44%).
Likewise, consumers curious about cryptocurrencies are the most likely to be motivated, as they consider cryptocurrencies to be the future of financial services and a means of building wealth (44%).
Bitcoin is known by practically all Brazilian respondents and about a quarter of people who know cryptocurrencies have this asset.
However, most active and passive owners are interested in stablecoins, as there is a strong preference for these coins as a means of savings compared to cash. In addition, engaged consumers are highly interested in rewards plans or cards that enable the use of cryptocurrencies.