Cryptocurrency adoption in Latin America is among the highest in the world, according to a Chainalysis report. Socio-economic issues, such as the devaluation of official currencies and regular recessions, have led to this scenario in which Argentina, Brazil, El Salvador and Mexico have positioned themselves among the global countries that most adopt the technology. But while these countries share some common causes, the way each one drives the new money revolution is different.
According to Transfero’s CEO, Márlyson Silva, “as people study and are educated about crypto, they start using BRZ daily. For example, I don’t use my bank cards, but rather the stablecoin to pay my bills. When I travel, I don’t need to convert the balance into dollars or euros, but rather BRZ to pay for my coffee”, he explains, illustrating how payment platforms that operate with cryptocurrencies help in the process of economic globalization.
Brazil: one of the leaders in Latin America
Brazil is in second place in the regional ranking with around US$ 90.3 billion traded in 2024. This means that business possibilities, especially in metropolitan regions, become more viable.
Due to the devaluation of the Real, especially during the pandemic, many people started to protect their assets through cryptocurrencies. The more conservative invest around 2% to 5% of their capital, while the more daring invest more than 5%, according to Investnews.
The process of integrating traditional and decentralized economies has been evolving in Brazil and the Brazilian regulatory framework has been developing. Law 14.478/22 determines the guidelines for digital asset service providers to work in the country.
The Central Bank of Brazil (BCB), developer of Drex, the digital version of the Real, also uses blockchain technology in its infrastructure. This will allow the body to integrate users’ financial services with decentralized finance (DeFi) more easily.
Argentina: adoption at an accelerated pace
Due to the economic crisis that has persisted in the country for years, Argentina leads the ranking in adoption of digital assets in Latin America. The Argentine peso has faced long periods of devaluation and only in recent years has managed to control inflation.
The government is equally favorable to the use of crypto assets. The acting president, Javier Milei, wants to build a regulatory framework that allows the free circulation of digital assets throughout the national territory, despite the recent problem of promoting a memecoin. General Resolution 994, according to a report by DLA Piper, should be reviewed by the acting government.
As reported by the law firm Freeman Law, Section 765 of the Argentine Civil and Commercial Code still does not recognize digital assets as legal property, although there is no law prohibiting their use.
According to research carried out by Americas Market Intelligence, 51% of Argentine consumers have already purchased crypto in some way. About 27% of respondents claim to acquire digital assets regularly to build their portfolios. Another interesting fact is that 98% of respondents claim to have some degree of knowledge about crypto assets.
There are several developers in the country who have specialized in the most consolidated programming languages in blockchain ecosystems and, thus, Argentina has the potential to become a financial innovation “hub”.
Mexico: Central America’s “giant”
Stablecoins are among the most used assets in Mexico, which shows strong growth in the use of cryptocurrencies by the general public.
According to a Microsoft report, 63% of the adult population in the country does not have a bank account and cryptocurrencies help to formalize the financial lives of this population, since the integration process is faster and simpler than the bureaucracy required to open an account in a traditional bank.
Although there is no specific regulation on cryptocurrencies, the Law of Credit Institutions and the Law to Prevent and Identify Operations of Resources of Illicit Origin are used by the authorities to guarantee the financial integrity of citizens. The Bank of Mexico (which is the country’s central bank) wants to create a digital currency (CBDC) to modernize the current financial system and establish clear rules on the circulation of digital assets.
El Salvador: Bitcoin as official currency
Salvadoran President Nayib Bykele was the first in history to make bitcoin (BTC) an official currency of the country. The asset was mandatory between September 7, 2021 and January 29, 2025. Now, users can only use it if they wish.
Monetary policies are being built by Congress to regulate other types of digital assets. At the moment, the legislation refers only to BTC, but this should be reviewed in the coming years, at least depending on the efforts of the crypto market.
Tether Holdings, the company behind the stablecoin Tether (USDT), for example, promises to move its headquarters to El Salvador after obtaining a license to operate in the country. It will leave the British Virgin Islands in the coming months.
Cryptocurrency adoption: a multifaceted effort
Both private and public initiatives are joining forces to ensure the peaceful coexistence of the two economies. Emerging economies tend to accept cryptocurrencies more easily, given the devaluation of their fiat currencies over decades.
It is a way of protecting the assets of all involved, promoting financial inclusion and technological education simultaneously. After all, the more inserted the population is in the subject, the deeper their knowledge and ease of adaptation to new trends will be.
