Crypto Adoption In Latin America Grows, But Still Lacks Education.

A study has been done using criteria such as CeFi/ DeFi use and P2P trading volumes.
The result of that study was that people living in countries in Latin America, South East Asia, and Eastern Europe are investing much of their current savings into virtual assets.

Latin America has witnessed increasing adoption, mostly because of rising inflation levels along with an anchor of geo-social aspects such as political volatility and not getting access to the top most traditional finance services.

Several Latin American nations have been struggling with fiercely high levels of inflation newly. States such as Venezuela, Argentina, Brazil, Chile, Colombia, Mexico, and Peru are experiencing such issues.

The main reason for the adoption of crypto in Latin America is political instability. Research studies have shown that presently Latin America comes under the list of most unstable regions worldwide, with armed war conditioned to continue growing in the future.

Last but not least, the DeFi sector has grown from a total estimation of $800 million to more than $500 billion in the period of 30 months; many youngsters of Latin America have initiated applying crypto protocols in the place of traditional financial institutions for various reasons like sending/receiving funds, etc.

Lack of Education- The main hindrance

Latin America is currently circulating 15% Bitcoin of the total supply over the world. The main hindrance in the path of adoption is a lack of education. The study shows that 99% of crypto followers don’t even know the basics of blockchain, DeFi, Web3, NFTs, etc.

However, there are many educational forces in Latin America that focus on educating them, resulting in bringing more people to the crypto and blockchain ecosystem. The National Autonomous University of Mexico has launched a financial engineering specialization module that is crypto-centric.

Similarly, there are many platforms for educating things about crypto. Thus, crypto education is a key factor for growth as we lead towards decentralized projects.

Last year, El Salvador was the first country in the world to legalize Bitcoin in the country. After that, the President carried on to purchase the flagship crypto from the country’s treasury, currently owning 2,381 Bitcoin.

Brazil is one of the most significant markets for Web3 projects. Receita Federal, the financial regulator of Brazil, has disclosed that the citizens of the nation traded about $11.4 billion value of stablecoins between January and November 2021. Moreover, Brazil also holds some of the best crypto platforms, like Mercado Libre.

A recent study also shows that the natives of Latin America are the most confident regarding the future of the crypto world as compared to any other place in the world. As a matter of fact, a Bitcoin ATM was also installed in the Mexican senate this year.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing