According to a recent survey conducted by Mastercard, over 50% of consumers traded or used cryptocurrencies. This study shows a clear interest in digital currencies in the Latin American region. There could be different reasons linked to this result considering that the region has been affected by inflation, economic instability, and political regime changes.
Latin American Consumers Use Digital Currencies
It is often discussed that virtual currencies are not used and that they were unable to reach a large portion of the population in certain markets. However, we should take into consideration that some regions have adopted digital assets more than others.
Latin America shows that it’s a the forefront of cryptocurrency adoption. As per the recent survey conducted by Mastercard, 51% of Latin American consumers transacted with crypto. The interesting thing about this is that 33% of these consumers used stablecoins such as Tether (USDT) or USD Coin (USDC).
The New Payments Index 2022 study shows a clear interest in virtual currencies from consumers in Latin America. At the same time, consumers are optimistic about the future of this market. 54% of the respondents said that they are confident about the future performance of digital assets.
Additionally, the study shows that consumers have used at least one emerging payment method in the past year. This is more than European and North American consumers. This could be due to the fact that there is larger stability in developed nations when it comes to payment methods and financial services and solutions.
Walter Pimenta, executive vice president, Products and Engineering at Mastercard for Latin America and the Caribbean, said:
“The future of payments is already here. Increasingly Latin Americans are turning to technology to conduct their financial transactions and this trend is expected to continue to rise, with an overwhelming 95% planning to use a digital payment method in the coming year and 29% acknowledging having used less cash in the past year.”
At the same time, consumers in this region have also had contact with different banking, fintech and alternative payment options to keep their finances controlled. The study shows that almost 80% of the respondents would like to have flexible payment solutions as well.
Bitcoin (BTC) and other cryptocurrencies are having a large impact on different markets. This happens due to different reasons, but Latin America is one of the regions with the largest number of crypto consumers in the world. Nowadays, it is possible to use virtual currencies to pay for goods and services and avoid hyperinflation. Venezuela is one of the countries where digital assets such as DASH (which are faster and cheaper to use) have taken off faster compared to other options.
Finally, despite Bitcoin’s volatility, Latin American consumers seem to be positive about the future of the crypto market. Even when Bitcoin stays close to $21,000, there could be a possibility for the market to move higher in the future. Therefore, consumers continue to use these virtual currencies to conduct their financial operations.