Latin America is a market with growing adoption
They have become an instrument of financial inclusion in LatAm, as a lower-cost way of transferring funds, especially for immigrant communities, and have been increasingly used for investments and payments as well.
Cryptocurrency adoption worldwide
Source: Statista Global Consumer Survey, 2021
High volumes
Volumes are also growing significantly, with Latin American countries such as Venezuela and Colombia outstripping the US market in Bitcoin volume on some online platforms.
Overall, interest in cryptocurrencies in 2020 was seemingly higher in Latin America than some of the world’s developed economies.
Bitcoin traded volume, 2021
Source: LocalBitcoins, via Coin.dance (volumes in BTC)
Regional Share
Venezuela and Colombia are currently the countries with the highest volumes of Bitcoin trade, according to 2021 data from LocalBitcoins (a P2P platform widely used in Latin America).
This is mainly driven by the use of crypto for remittances among the immigrant community.
Bitcoin traded by country (BTC)
Source: LocalBitcoins, via Coin.dance (2021)
Brazil
Brazil’s share in Latin America has been growing consistently, going from 3.3% in 2020 to almost 5% in 2021, considering Bitcoin volume traded on LocalBitcoins.
Due to the growing interest on cryptocurrencies, native online crypto platforms have been popping up, such as Mercado Bitcoin, Foxbit and BitPreço.
Bitcoin traded in Brazil (BRL millions)
Source: LocalBitcoins, via Coin.dance (2021)
Individual consumers amount for most of cryptocurrencies users in LATAM – which makes the region a great opportunity for online cryptocurrency platforms.
Customer profile
Source: Cambridge Judge Business School, 2020
Local payments on online crypto platforms in Brazil – Key vendors
Cryptocurrency online platforms have been booming in LATAM, focusing both on individual investors and retail customers interested in crypto as remittances or investments.
Some local players have gained prominence, such as Bitso, the second Mexican unicorn; the Argentina-based Ripio; and the Brazilian Mercado Bitcoin.
A well known crypto online platform worldwide, with localized website in Brazil.
Strengths:
• Localized website;
• Accepts credit cards.
The most prominent local cryptocurrency platform in Brazil, founded in São Paulo.
Strengths
• Localized website;
• Deposits in BRL;
• Accepts PIX and TED.
The most popular international crypto platform in Brazil.
Strengths
• Localized website;
• Deposits in BRL;
• Accepts PIX and TED.
This P2P platform is well known in LatAm countries and accepts a wide range of local payment methods.
Strengths
• Deposits in BRL;
• Accepts PIX and TED;
• Accepts credit cards;
• Accepts e-wallets and cash.
Key takeaway
Local cryptocurrency vendors are taking the edge over global players by offering local payment options and localized websites and apps. In Brazil, players who offer PIX (Instant Payment)
have even more traction among retail clients, due to this payment method’s growing popularity and gratuity.
International vendors who offer local currency deposits are also in advantage over their rivals, since it allows users to avoid currency fluctuation and exchange fees.
Under one unique platform, EBANX enables you to easily choose over 100+ local payment methods, across 15 different countries.
Read also: The LatAm cryptocurrency boom
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