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The adoption of cryptocurrencies in Latin America has increased significantly. The pandemic fuelled an increased adoption of these digital assets, with a Mastercard survey showing that 51% of consumers in the Latin American region have transacted in cryptocurrencies.
Mastercard shows 51% of Latin-American consumers have crypto experience
The adoption of digital payments in Latin America was influenced by the pandemic. The pandemic saw many people turn towards digital platforms to buy goods and services. Moreover, the fear of inflation at the time made many people opt for crypto as a store of value.
Over a third of the people involved in the survey said they had completed a purchase using stablecoins. This is according to data from Mastercard’s New Payments Index 2022. The index consists of a survey carried out between March and April, comprising over 35,000 respondents globally. Mastercard published the results of this survey on Wednesday.
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Besides evaluating crypto adoption in the country, the Mastercard survey also looked into other digital asset sectors, such as financial innovation. The survey showed that digital assets such as cryptocurrencies, non-fungible tokens (NFTs), decentralized finance (DeFi) solutions, and blockchain technology registered a notable increase in activity in the Latin American region.
Consumers in the region also showed a willingness to learn about the crypto ecosystem. While crypto assets have grown in countries facing rising inflation levels, consumer education has always been a hindrance. Therefore, Latin America is taking a bold step in embracing crypto transactions.
Walter Pimenta, the executive vice president for products and engineering at Mastercard Latin America and the Caribbean, said that “Increasingly, Latin Americans are turning to technology to conduct their financial transactions and this trend is expected to continue to rise, with an overwhelming 95% planning to use a digital payment method in the coming year and 29% acknowledging having used less cash in the past year.”
Embracing crypto for investments
54% of the consumers based in Latin America are also optimistic about using digital assets as an investment. Two-thirds of those involved in the survey sought greater flexibility to use cryptocurrencies alongside traditional payment methods.
Most of the consumers in the region, which comprised 82% of those involved in the survey, said they opted to have functions related to cryptocurrencies available in the financial institutions with which they were currently working.
The survey also showed that 69% of the interviewed customers were confident about cryptocurrency investments, while 67% were willing to accept payments in cryptocurrencies issued by a trustworthy company.
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