The research and analysis company Blockchain Chainalysis has published a new segment of its „Chainalysis 2020 Geography of Cryptocurrency Report“ and this time they have focused on Latin America. The evaluation has focused on studying how the cryptomoney market has behaved in the last 12 months (July 2019 to July 2020).
One of the first data presented is that the region sent 25 billion dollars in crypt coins, while it received a total of 24 billion dollars. This has positioned the Latin American market as one of the smallest and only ahead of the market in Africa and the Middle East, according to Chainalysis.
In spite of the noise that exists on the Latin market, the research company mentioned that the region only represents between 5% to 9% of the activity that they have evaluated in the market in the last year. They also mentioned that it was the second slowest market in terms of growth.
However, despite this reality, the study revealed that Latin America presents unique conditions that demonstrate that cryptomonies are being used in the region beyond the speculation that variations in their prices could generate.
Remittances and International Transactions with Crypt-Currencies in Latin America
One of the aspects of the region’s crypto issue refers to the use of these assets for remittances. One of the data they pointed out in the study is that 90% of the crypto-currencies entering the addresses identified within the region come from outside Latin America.
In the graph shown by Chainalysis it is reflected that the areas of East Asia, together with North America and Western Europe are the regions where more payments with crypto-currencies come, this according to the average amount and number of transfers, as well as the total value transferred.
Asia also appears as one of the destination regions for outgoing funds from Latin America. The U.S. research firm concluded that this was happening because many Latin American Immediate Edge companies were using crypto currencies to pay Asian product exporters.
Internally in the region, the research pointed to a considerable volume from Argentina and Colombia to Venezuela, which also demonstrates the use of crypto currencies for the remittance market between the region.
Bitcoin’s trade volume drops by 37% worldwide, but increases in Latin America