A recent report from Mexican cryptocurrency exchange Bitso presents noteworthy data regarding growing cryptocurrency adoption in Latin America during the second half of 2023.
Bitcoin and Stablecoins Dominate the Cryptocurrency Landscape
Bitso’s recently released Latin America Cryptocurrency Landscape: 2H 2023 Report analyzes cryptocurrency market trends in some of the Latin American countries with the highest cryptocurrency adoption rates, including Colombia, Argentina, Brazil, and Mexico.
Analysis of user activity in Latin America shows that cryptocurrencies are growing in popularity in the region. Despite challenges such as limited access to financial services and a high proportion of unbanked individuals, some of the countries reviewed ranked among the top 20 globally for cryptocurrency adoption.
Cryptocurrency adoption expanded among Latin America’s population in the second half of 2022 and throughout 2023, demonstrating “significant acceptance of cryptocurrencies” in the region despite local difficulties and cryptocurrency market volatility.
The report’s breakdown of regional data shows that Colombia had the highest year-over-year growth in the region, with the exchange’s registered users growing by more than 60%. Brazil ranked second with a staggering 31% growth, followed by Mexico and Argentina with 18% and 16% growth respectively.
It is worth noting that Latin America is dominated by young people, with about 63% of users under the age of 34, an increase of 2% from 2022. Additionally, users in this age group are more likely to adopt new technologies and access the internet.
According to the report’s data, the flagship cryptocurrency is the top choice among Latin American users, while stablecoins rank second. Bitcoin accounts for 53% of Latin American users’ portfolio holdings, slightly higher than the world average of 50.4%, the report said.
Additionally, Bitcoin accounted for 38% of total cryptocurrency purchases in the second half of 2023, while stablecoins accounted for 30% of cryptocurrencies purchased in the region.
Additionally, stablecoins (USDC and USDT) are the fastest growing cryptocurrencies in the region, with Colombia and Argentina leading the adoption trend. Mexico and Brazil have stablecoin market shares of just 5% and 8% respectively, with Brazil standing out for having the most diverse market portfolio, from Bitcoin to altcoins to memecoins.
Cryptocurrency adoption among women increases with age
Another notable conclusion from the report is the increase in female cryptocurrencies in the Latin American region, highlighting the significant correlation between age and adoption in the female case.
According to the report, as the age group of users grows, so does the proportion of female cryptocurrency adopters globally. Women account for 21% of cryptocurrency users in the 18-24 age group, while 41% of users between the ages of 55 and 64 are female.
Women aged 65 and above account for as high as 43%, making them the group with the highest adoption rate among women of all age groups.
Colombia and Brazil lead the region, with both countries having a ratio of more than 70/30 male and female users. This suggests that the region is slightly more developed and advanced when it comes to engaging women in technology and supporting women’s economic independence compared to other countries in the region.
Women feel entitled to cryptocurrencies as they age, which may be indicative of later financial independence and stability for women compared to men.
The report’s findings reveal that Latin American women prefer to purchase more “stable” cryptocurrencies, such as Bitcoin and stablecoins.
Notably, 37% of Bitcoin purchases with Mexican pesos in the second half of 2023 were made by women. In Colombia, women accounted for 36% of the total Bitcoin purchases using Colombian pesos, while the proportion of purchases using Brazilian reals and Argentinian pesos was lower, at 26% and 18% respectively.
As the report details, Bitcoin is favored by women in Brazil and Mexico, while stablecoins are more popular among women in Argentina and Colombia, suggesting that women in these countries see less volatile assets as a hedge against inflation in the region and devalued shields.
Ultimately, findings such as Bitcoin’s prominence among wallets in Latin America and the increase in women’s presence in the industry indicate that cryptocurrency acceptance is growing rapidly and that there is growing interest in digital assets as a means of protecting users and the global community. Trust in the tools that provide financial freedom continues to grow.
Bitcoin is trading at $47,951.1 in the hourly chart. Source: BTCUSDT on TradingView.com
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