According to a poll by the international consulting company Bain & Company, cryptocurrency use has increased in Chile. Following investment funds, which were the most popular investment option, and real estate, which came in second, the poll indicated that cryptocurrency is ranked as the third most popular financial asset among Chileans.
Popularity of Crypto Rises in Chile in 2022
Latam nations that have seen significant depreciation and inflation are beginning to look to cryptocurrencies as a form of investment. Cryptocurrency has become one of the most popular investment options on the market in Chile, one of the five nations in the region with the worst inflation rates.
The data come from a poll conducted by Boston-based global consulting company Bain & Company, which looked into the most exciting investment opportunities for the nation in 2022. Cryptocurrency is projected to be the third most popular investment option in 2022, according to 23% of those surveyed.
According to the survey, investment funds were the most popular option, selected as the initial investment by 36% of those surveyed. When asked if they have made real estate investments, 24% of respondents said yes.
Why Crypto Is Becoming More Popular
The reasons for the outcomes have to do with how investors view cryptocurrencies and their potential returns, even though 2022 wasn’t a great year for the industry due to Terra’s death and FTX’s bankruptcy, two particularly significant incidents. Partner at Bain Chile Marcial Rapela commented on this perception as follows:
This number fits the pattern we have been observing lately, where digital currencies have grown more and more well-liked due to their high rates of return on occasion.
However, because of its low volatility and related risk, most people continue to prefer traditional investment options. Cryptocurrency was still much more preferred than other well-known options like stocks and bonds, which received 21% and 19% of the vote, respectively.
Chile has been taking steps to provide regulatory certainty to bitcoin investors. In October, the nation passed a fintech law that, according to analysts, will eventually draw more funding to the bitcoin sector. In addition, bitcoin exchanges are now permitted to create bank accounts in the nation following years of legal battles with private banks. The first to do so was the national exchange Buda, which provided access for others.