The factors influencing the adoption of cryptocurrencies in Latin America in 2022

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According to sources in the region who provided Cointelegraph with exciting examples of development in numerous nations, inflation, cross-border payments, assets tokenization, and nonfungible tokens (NFTs) were among the key factors influencing the adoption of cryptocurrencies throughout Latin America in 2022.

Latin America contributed $9.1% of the total value of crypto received globally in 2022, which totaled $562 billion between July 2021 and June 2022, an increase of 40% over the same period. According to the most recent Chainalysis Global Adoption Index, four Latin American nations were among the top users of cryptocurrencies.

Over the past 12 months, significant developments have contributed to these results. Authorities have been implementing standards for business operations, defining regulations, and working on central bank digital currencies (CBDCs). Numerous businesses in Latin America have been investigating ways to use blockchain technology and digital assets to address the various issues that the region’s nations are currently facing.

A representative for the cryptocurrency exchange Bitso, which operates in Brazil and Argentina in addition to other nations in Central America, stated that “the region is ripe with opportunities for cryptocurrency adoption,” adding that:

“For both Argentina and Colombia, the impacts of inflation have driven many to use cryptocurrency. For Colombia, remittances are another significant driver of adoption, even surpassing coal as a driver of dollar revenue in 2022 according to a Banco de Bogotá report.”

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