Buenos Aires — In the face of unrelenting inflation, more and more Argentines are becoming interested in the cryptocurrency market and, according to a survey, in terms of holdings, the adoption rate in the country is expected to jump from 5.5% of the population to 18.4% this year.
This trend, which has even led many Argentines to receive their salaries in crypto, according to a study conducted through a survey by Sherlock Communications, is also expanding throughout Latin America, where it is also expected to see rapid acceleration over the next year.
Crypto Across the Region
Brazil holds the top position in Latin America for crypto adoption, as more than 25% of respondents to the survey said they intend to purchase cryptocurrencies during the next 12 months. “That equates to 36 million Brazilians with plans to purchase crypto this year, and represents a 91% increase from just over 13% of the population who have already purchased a cryptocurrency or token to date”, the survey said.
Colombia is the second largest ‘crypto country’ in Latin America, with 22.3% of respondents expecting to buy digital currencies or tokens in the coming year, up from 5.2% currently.
While Brazil reports the highest adoption rates, the speed at which adoption is growing is even faster in other countries in the region. For example, in Peru, 12% of respondents said they will buy cryptos in the next 12 months, compared to only 1% who have already done so.
Another fast-growing market is Mexico, where a 345% increase in adoption is expected.
Meanwhile, in Argentina, the survey revealed there will likely be a 235% increase in the adoption rate, from 5.5% that until now had purchased cryptocurrencies, to a projected 18.4%.
And 16% of Chileans surveyed said they planned to buy digital currencies in the next 12 months, representing an increase of 208%.
“Our survey has revealed that Latin America is poised to experience a major surge in the uptake of digital currencies in several countries in the region,” according to Patrick O’Neill, managing partner at Sherlock Communications.
“Clearly, there is a great deal of interest in cryptocurrencies,” O’Neill added. “However, the survey also reflects that participants face concerns about cybersecurity with respect to exchanges and tokens, as well as frustration with the availability of independent analysis and educational resources on this emerging area for investment.”
Obstacles to Adopting Crypto
“A lack of understanding about how that technology works”, and “I need to have better knowledge about how to buy or invest in cryptocurrencies”, were the top two obstacles respondents identified to implementing their desire to acquire digital assets.
In those six countries, more than half of the respondents gave at least one of those two above mentioned reasons as to why they will not buy crypto in the next 12 months.
The lack of education about cryptocurrencies was also supported by another of the report’s main findings: a large proportion of respondents in all countries stated that they had “never heard of blockchain”.
In Argentina, for example, the percentage was the highest, with 89.2% of respondents saying they had never heard of the term, although there were also high levels of such a response across the wider region: 85% in Peru, almost 80% in Chile and Mexico, 77% in Colombia and 68% in Brazil.