Mexican crypto exchange Bitso has released a report highlighting the surging crypto adoption in Latin America in the latter part of 2023.
Bitcoin And Stablecoins Dominate The Crypto Landscape
The recently published ‘Crypto Landscape in Latin America: Report 2H 2023’ by Bitso analyzed the crypto market trends in several Latin American countries with high crypto adoption, including Colombia, Argentina, Brazil, and Mexico.
Analysis of user activity in Latin America revealed the increasing popularity of cryptocurrency in the region, despite challenges such as limited access to financial services and high levels of unbanked individuals. Some of the countries reviewed ranked among the top 20 in the world for cryptocurrency adoption.
The report indicates a significant surge in crypto adoption among the Latin American population during the second half of 2022 and throughout 2023, signaling a strong embrace of cryptocurrencies in the region despite local challenges and market volatility.
The regional data breakdown in the report shows that Colombia experienced the highest year-on-year (YoY) growth in the region, with a +60% increase in registered users on the exchange. Brazil followed with a remarkable 31% growth, while Mexico and Argentina showed an 18% and 16% increase, respectively.
Notably, the youth led the crypto adoption in Latin America, with around 63% of users being younger than 34 years old, a 2% increase from 2022. This age group shows a greater tendency to adopt new technologies and access the internet.
According to the report, the main cryptocurrency preferred by Latin American users is Bitcoin, while stablecoins rank second. Bitcoin accounts for 53% of the portfolio holdings of Latin American users, slightly above the 50.4% world average.
In addition, Bitcoin represented 38% of the total crypto acquired in the second half of 2023, while stablecoins accounted for 30% of the purchased crypto in the region.
Moreover, stablecoins (USDC and USDT) were the fastest-growing cryptocurrencies in the region, with Colombia and Argentina leading the adoption trend. Mexico and Brazil’s stablecoin presence accounted for only 5% and 8%, respectively, with Brazil standing out for having the most diverse market portfolio, including Bitcoin, altcoins, and memecoins.
Women’s Crypto Adoption Increases With Age
Another key finding from the report is the growing involvement of women in the crypto space in Latin America, with a notable correlation between age and adoption rate among women.
The report indicates that the proportion of female crypto adopters globally increases as the users’ age group advances. Women account for 21% of crypto users in the 18-24 age range, while female users between 55 and 64 represent a 41% share.
Women aged 65 and older remarkably represent 43% of the share, having the highest adoption rate among all age groups.
Colombia and Brazil lead the region, with both countries having a proportion of women in crypto exceeding 70%. This suggests a more advanced landscape in terms of including women in technology and supporting women’s financial independence compared to other countries in the region.
The report also reveals that Latin American women prefer purchasing more “stable” cryptocurrencies such as Bitcoin and stablecoins.
Notably, 37% of the Bitcoin purchases with Mexican pesos in the second half of 2023 were made by women. In Colombia, women’s purchase of Bitcoin using Colombian pesos accounts for 36% of the total share, while the purchase using the Brazilian real and Argentinian pesos is lower at 26% and 18%, respectively.
As the report details, Bitcoin is the preferred choice for women in Brazil and Mexico, while stablecoins are more sought after by Argentine and Colombian women, indicating that women in these countries see less volatile assets as a shield from the inflation and devaluation observed in the region.
In conclusion, findings such as Bitcoin’s prevalence in Latin American wallets and the increasing presence of women in the industry suggest a rapid surge in cryptocurrency acceptance and growing trust in digital assets as a means to protect users and provide financial freedom worldwide.
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