Exclusive research by the WCFA Corporate Member Sherlock Communications - LATAM PR and Digital Marketing Agency, and winner of five Golden Davos Communications Awards.

The rapid growth of Blockchain in Latin America is changing the way people view and deal with money. But many countries, and their decision-makers, are still reluctant to embrace cryptocurrency, or even open bank accounts.

This reticence can be mainly attributed to a lack of trust among citizens towards banks and the General Data Protection Act (GPDL). IP piracy, financial exclusion, bureaucracy, inflation and rampant corruption have all led to increased suspicion around the topic.

To better understand the daily challenges faced by Latin Americans, and how the blockchain ecosystem can impact the current situation, we at Sherlock Communications surveyed 20 Latin American countries to create the Blockchain Report – LATAM 2022.

Blockchain in Latin America
Our research highlighted some extremely specific nuances about the adoption of cryptocurrency and its drivers in each of the countries we visited. Take Argentina, for instance. In a survey commissioned from Toluna, we asked Argentinians why they would consider investing in cryptocurrencies. The main reason, for 66% of respondents, was to protect their savings from inflation rates, which reached 50,9% in 2021.

Costa Rica, on the other hand, has a stable and reliable Internet connection and is one of the largest renewable energy outputs in the world, making it an attractive location for mining projects.

Even though cryptocurrencies are not regulated by its Central Bank, they are legal and acknowledged as legitimate means of payment. In addition to that, the Pura Vida country has embraced blockchain technology and cryptocurrencies extremely quickly.

The countries with the fastest anticipated crypto adoption rates are Peru, where adoption is expected to increase by 1100% over the next 12 months, Mexico (345%), Argentina (235%) and Chile (208%).

Why are cryptocurrencies so important in Latin America?
Did you know that over 250 million Latin Americans don't have a bank account?

As the blockchain ecosystem increases on the continent, the unbanked population will no longer need to open an account or receive assistance from bank employees to be a part of the financial system. They will have autonomy in sending and receiving remittances, and using complementary currencies to buy daily goods, as well as accessing DeFi credit and UBI platforms.

Furthermore, by purchasing bitcoins, stablecoins and other cryptos, small businesses will be able to grow faster, and financial institutions may be able to offer more competitive services. It’s the “invisible hand” that economist Adam Smith taught us about in 1776.

Likewise, the concept of World Wide Web 3 (or “Web3”), which consolidates decentralisation and the token economy, can remunerate people for creating art, playing games and fulfilling other entrepreneurial tasks that are emerging online, helping to support families which are currently excluded from the financial system.  

Boosting the process
Catalysed by the pandemic’s impact on how we live and work, the digitization of financial systems like digital wallets and bitcoins has shown people that opening and maintaining a bank account is not necessary for managing or saving money.

Having become a gateway to cryptocurrencies, the Internet must now democratize knowledge of the blockchain ecosystem. After all, you can only rely on something if you know how it works, right?

What’s more, people should be aware that they can be a part of the movement. Otherwise, we are doomed to repeat the same problems which we are facing today. Education is always the key, and if it’s used correctly, then everyone can crypto!

Our responsibility
As an independent consultancy specialised in boosting growth for international brands, our main goal is to understand Latin America’s diversity, and demonstrate how companies can connect with its people in a respectful and creative manner.

Our way of working is specifically designed to provide on-the-ground support to clients’ local teams, integrating seamlessly with their international marketing and communications department, able to move between territories and tactics quickly and effectively.

To learn more about our work and clients, and gain access to other exclusive reports, visit our SEO and Public Relations Agency website.