Latin America uses cryptocurrencies to replace official currencies. Photo: Kanchanara, Unsplash
Latin American users are much more likely to buy cryptocurrencies in 2022 than they were last year. In Brazil, for example, 25% of respondents in a survey by Sherlock Communications stated that they intend to buy digital currencies in the next 12 months. This is practically the double of 2021. It was the highest percentage calculated. However, lack of understanding on the subject appeared as the greatest fear in the region to enter the segment.
The survey was conducted through online questions this month with 1,200 people in Argentina, Brazil, Colombia, Chile, Mexico and Peru. Of these markets, Colombia is the second most interested in cryptocurrencies in the region. Of those surveyed, 22.3% expect to buy digital currency or tokens in the next 12 months. That’s a huge jump from the current estimated percentage of holders of 5.2%.
“Our research revealed that Latin America is about to see a huge increase in digital currency adoption in countries across the region,” says Patrick O’Neill, managing partner at Sherlock Communications.
Latin America has entered the cryptocurrency map as a region with great growth potential because official currencies are unstable. In Venezuela and Argentina, for example, those who have cryptos use it a lot for payments.
According to the study, Brazil has the highest overall cryptocurrency adoption rates. However other regions grow faster. After all, they are still at the very beginning of this journey. It’s Peru, for example, where 12% of respondents say they will buy cryptocurrencies in the next year, compared to 1% who have already purchased.
Latin America lacks education actions on cryptocurrencies
Two other fast-growing markets are Mexico, which is expected to see a 345% increase in adoption, to 16.9% of respondents, and Argentina, to 18.4%. Meanwhile, 16% of Chileans plan to buy digital currency in the next 12 months, up from 5.2% who already have.
Despite all the interest, the survey also showed that respondents “are struggling with cybersecurity concerns regarding exchanges and tokens. As well as the frustration of having independent analysis and education in this emerging area of ​​investment,” added O’Neill.
“Lack of understanding about how technology works” and “I need to better understand how to buy or invest in cryptocurrencies” were the two biggest reasons given by respondents about the obstacles to entering this segment. So much so that in all five countries, half of respondents gave one of these answers as a reason that prevents them from buying cryptocurrencies in the next twelve months.
Few people know blockchain
Furthermore, high proportions of respondents in all countries stated that they “had never heard of blockchain”. Interestingly, Argentina led with 89.2% of respondents giving this answer. The other percentages were 85% in Peru, almost 80% in Chile and Mexico, 77% in Colombia and 68% in Brazil. “The knowledge of many respondents in this area is quite superficial,” says Luiz Hadad, blockchain consultant at Sherlock Comunicações.
“The report shows that Latin Americans believe crypto and web3 will play an important role in their financial futures. However, there is a huge educational gap preventing the first step towards entering the crypto space.”
The Blockchain Report – Latam 2022 from Sherlock brings information about the blockchain ecosystem in all Latin American countries. Including regulatory issues, cryptocurrency adoption and prominent companies in the region.