Latin Americans see crypto assets as an opportunity to diversify their investments, safeguard value, and make money exchanges. A growing number of people in Argentina, Brazil, Colombia, Mexico, Chile, and Venezuela have expressed interest in learning about Bitcoin.
The news about the entry into force of the Bitcoin Law in El Salvador has quickly spread to other Latin American countries. A survey revealed that around 50% of Colombians, Argentines, Brazilians, and Mexicans agree with adopting BTC as legal tender.
Latin Americans would use cryptocurrencies to diversify their investments, protect value, and make international money exchanges. That is understandable since the region is one of the largest recipients of remittances from abroad. Furthermore, there has been a long history of inflationary economies in Latin America.
The survey indicates that 56% of Brazilians support the decision made by El Salvador. Another 48% of those surveyed even expect something similar to happen in that South American country. In Colombia, 52% said they agree with the measure in El Salvador, while 51% do so in Mexico and 45% in Argentina.
There Should Be More Education About the Use of Bitcoin
The study highlighted that respondents are willing to engage even more with cryptocurrencies. However, they admitted that they need to receive better education about Bitcoin and other digital assets. One element encouraging them to invest in crypto assets would be learning to use platforms that do not require specialized knowledge.
Consultant Luiz Haddad noted that the blockchain and cryptocurrency market would continue to grow in Latin America in the coming years. He explained that the Salvadoran initiative would set an example to incorporate blockchain and cryptocurrencies into the economy and benefit citizens.
According to the poll, some factors hold Latin Americans back from investing in the pioneering cryptocurrency. The main reasons are economic inequality and lack of knowledge on how to trade Bitcoin. In that sense, the participants requested wider dissemination of literature so that there is more confidence.
A total of 2,200 people from Argentina, Brazil, Colombia, Costa Rica, Chile, El Salvador, Mexico, and Venezuela participated in the survey. Approximately 50% of the respondents from each of those countries are willing to accept the legalization of Bitcoin.
Bitcoin is Emerging on the Latin American Continent
Latin Americans are not the only ones who have reacted to the decision made by El Salvador. Other countries in the region are discussing the adoption of Bitcoin to attract investment for fields such as mining. For example, the authorities of Paraguay, Uruguay, and Panama are already making legislative advances.
Latin America has many cryptocurrency exchanges, startups focusing on developing wallets, the Bitcoin Lightning Network, decentralized finance (DeFi) apps, and digital identity projects.
The relevance of Bitcoin is increasingly evident in the world economy, which is why many governments have it in their sights. Adopting the pioneering cryptocurrency as legal tender in El Salvador is just the beginning of other similar cases. Of course, those who decide to do so will have to face the opposition of different actors in society, as in the Central American country.
By Alexander Salazar