New York-based blockchain analytics firm Chainalysis has released new research highlighting this In the past year, up to 200,000 crypto transactions valued at more than $ 1 billion have been carried out between Latin America and Asia.
The study “Latin America eases economic turmoil with cryptocurrenciesAnalyzes and shows the trends of cryptocurrencies in Latin America between July 2019 and June 2020 Bank access problems and the need for wire transfers lead to unique patterns of cryptocurrency usage, especially in cross-border business transactions.
While North America and Western Europe are the main source of escrow transfers for Latin America, East Asian transactions lead the volume of crypto transactions. Many of these payments are commercial transactions between Asian exporters and Latin American companies.
Speaking to Cointelegraph, Kim Grauer, Head of Research at Chainalysis, said that The company could not point to a single driving factor, as across Latin America there are differences between different countries “with different political and banking systems”.::
What We Can Say: The use of P2P exchanges is a key service to launch in Venezuela, a large professional market is driving adoption in Brazil, and a significant commercial market is driving adoption between Argentina, Paraguay and Brazil in merchandise trade often imported from China. “
The study cited Luis Pomata, co-founder of Paraguay-based Cripex exchange, who said Paraguayan banks are worried about money laundering “and are very demanding of who they partner with”. This is why the bank application process is “long and difficult,” adds Pomata, as many companies are rejected by banks..
The chain analysis illustrates this “Many individuals” cannot get bank accounts in Latin America either, which promotes acceptance of cryptocurrencies in the region.
In July, Bitso, one of the largest cryptocurrency exchanges in Latin America, reached one million users before its start in Brazil.
According to Santiago Alvarado, Director of Cross-Border Payments at Bitso, The success of the exchange in Argentina is related to exceptional cryptocurrency activity and an increasing demand for cross-border payments in the local market.