People in South and Central America are more likely to hold cryptocurrency in their wallets than US dollars or their local fiat currencies. It’s been a trend for a while, but people in Peru and Venezuela are particularly interested in cryptocurrency investment as a means of protecting their wealth from the country’s hyperinflation. Many people will take a chance of less than 0.01% on a way out of poverty if they think they will win big.
People in Peru are putting their life savings into Sol-pegged PEN and BTC, while we recently learned that the government is considering adopting these digital currencies. Coincidentally, each month sees a rise in the daily trading volume of Bitcoin and Ethereum from Venezuelans trying to invest in these currencies.
Over $912 million was invested in Bitcoin and other cryptocurrencies in Brazil in May of 2022, demonstrating the country’s growing interest in the sector. Attempts by citizens to amass additional cryptocurrency are not met with any resistance from the government. In the first quarter of 2023, the central bank will conduct experiments with digital Real and make its financial system more adaptable, all while gradually incorporating crypto trading into the national economy.
To ensure that all economic actors may take use of digital currency, the new digital reality will be developed in tandem with blockchain firms, crypto exchanges, and financial institutions. It’s a fantastic method of extending financial options to those who don’t use banks or who can’t use banks for a variety of reasons.
Intriguingly, Brazilians are not buying USD-pegged stablecoins despite the country’s strong inflation (near to 10%). Many people are considering solely purchasing Bitcoin (BTC) as an investment vehicle. Basically, they basically put their money into Bitcoin and cross their fingers. In this country, not even ETH can compete with Bitcoin. However, we can all benefit from the surge of South American investors.
South Africa appears poised to be the first major region to adopt cryptocurrencies on a national level.