Growing Adoption: Bitcoin Accounts For 53% Of Latin American Wallets – Report

A recent report by Mexican crypto exchange Bitso showcases noteworthy data about the growing crypto adoption in Latin America during the second half of 2023.

Bitcoin And Stablecoins Dominate The Crypto Landscape

The recently published ‘Crypto Landscape in Latin America: Report 2H 2023’ by Bitso analyzed the trends in the crypto market of some of the Latin American countries with the highest crypto adoption, including Colombia, Argentina, Brazil, and Mexico.

An analysis of user activity in Latin America demonstrated the increasing popularity of cryptocurrency in the region. Despite the challenges of limited access to financial services and high levels of unbanked individuals, some of the countries reviewed ranked among the top 20 in the world for cryptocurrency adoption.

The expansion of crypto adoption observed in the Latin American population throughout the second half of 2022 and all of 2023 suggests a “remarkable embrace of cryptocurrencies” in the region despite local difficulties and the crypto market’s volatility.

The report’s breakdown of the regional data shows that Colombia has the highest growth Year-on-year (YoY) in the region, with a +60% increase in registered users in the exchange. Brazil takes the second place with a remarkable 31% growth, while Mexico and Argentina showed an 18% and 16% increase respectively.

Notably, the youth took the lead in Latin America, with approximately 63% of users being younger than 34 years old, a 2% increase from 2022. Additionally, this age group displays a greater tendency to adopt new technologies and access the internet.

Per the report’s data, the flagship cryptocurrency is preferred among Latin American users, while stablecoins rank second. Bitcoin’s presence accounts for 53% of Latin American users’ portfolio holdings, slightly above the 50.4% world average, according to the report.

Additionally, Bitcoin accounted for 38% of the total crypto acquired in the second half of 2023, while stablecoins accounted for 30% of the bought crypto in the region.

Moreover, stablecoins (USDC and USDT) were the fastest-growing cryptocurrencies in the region, with Colombia and Argentina leading the adoption trend. Mexico and Brazil’s stablecoin presence only accounts for 5% and 8% respectively, with Brazil standing out for having the most diverse market portfolio, ranging from Bitcoin to altcoins to memecoins.

Women’s Crypto Adoption Increases With Age

Another remarkable takeaway from the report is the increase of women in crypto in the Latin American region, highlighting a notable correlation between age and adoption rate in women’s cases.

According to the report, the proportion of female crypto adopters globally increases as the users’ age group advances. Women account for 21% of crypto users in the 18-24 age range, while female users between 55 and 64 years old represent a 41% share.

Women 65 years old and older remarkably account for 43% of the share, being the highest female adoption rate group among all age groups.

Colombia and Brazil took the lead in the region, with both countries crossing the 70/30 proportion between male and female users. This suggests a slightly more developed and advanced landscape in terms of including women in technology and supporting women’s financial independence compared to other countries in the region.

Women feel empowered to acquire crypto with age, which might indicate a connection with women’s late financial independence and stability compared to men.

The report’s findings show that Latin American women prefer buying more “stable” cryptocurrencies like Bitcoin and stablecoins.

Notably, 37% of the Bitcoin purchases with Mexican pesos in the second half of 2023 were made by women. In Colombia, women’s purchase of Bitcoin using Colombian pesos accounts for 36% of the total share, while the purchases using the Brazilian real and Argentinian pesos are lower at 26% and 18%.

As the report details, Bitcoin is preferred by women in Brazil and Mexico, while stablecoins are more sought by Argentine and Colombian women, suggesting that women in these countries see less volatile assets as a shield from the inflation and devaluation seen in the region.

Ultimately, findings such as Bitcoin’s prominence in Latin American wallets and the increase of women’s presence in the industry hint at a fast-paced surge in cryptocurrency acceptance and growing trust in digital assets as a vehicle to protect users and provide financial freedom around the globe.