According to a 2023 Chainalysis report, Latin America, which includes South and Central America, is the world’s seventh-largest crypto economy, trailing only Sub-Saharan Africa. Nonetheless, South and Central America have recently experienced increased cryptocurrency adoption. Brazil and Argentina were ranked ninth and fifteenth in global crypto adoption in 2023, respectively. Other countries, such as El Salvador and Venezuela, have also made significant progress in embracing crypto, earning this region global attention.
What is driving crypto adoption in Central and South America?
To better understand this, let us look at the several countries in the region that made Chainalysis’ top-20 list.
Argentina
Argentina has a history of financial instability and high inflation. In 2023, interest rates surpassed 96%, while inflation reached 108%. This hyperinflation, combined with a tech-savvy population, has led many Argentinians to turn to cryptocurrencies, especially stablecoins, to safeguard their wealth. The government also encourages crypto adoption, with newly elected President Javier Milei being pro-Bitcoin.
Brazil
While the Argentine population is drawn to digital assets due to the devaluation of their domestic currency, Brazil is interested for a separate reason. This is evident from the difference in crypto assets traded and held by both populations.
Unlike Argentinians, who have a higher demand for stablecoins, Brazilians prefer Bitcoin and altcoins, which are typically used for investment purposes. Brazil also features a large institutional crypto market and a strong presence in decentralized finance, placing it among the wealthier crypto economies.
El Salvador
El Salvador became the first country in the world to make Bitcoin their legal tender in September 2021, led by pro-Bitcoin President Nayib Bukele. El Salvador has since purchased 2823 Bitcoin, valued at approximately $121.8 million, according to the Nayib Bukele tracker.
Nayib’s vision for Bitcoin in El Salvador as the country prepares for the 2024 general elections on February 4, includes Bitcoin-backed bonds and a tax-free Bitcoin City. This vision denied the country a shot at a $1.3 billion loan from the International Monetary Fund (IMF) in 2022. The IMF opposed Bitcoin’s legal tender status in El Salvador and asked the state to reconsider the move, citing financial risks and consumer protection concerns.
Best Crypto Exchanges in Central and South America
Chainalysis reports that over 60% of cryptocurrency trading in Latin America occurs on centralized exchanges (CEXs). Venezuela (92.5%), Colombia (74%), Argentina (63.8%), and Brazil (60.7%) take the lead.
Let us take a look at the most popular exchanges among Central and South Americans.
Binance
Binance is the largest centralized exchange globally in terms of trading The exchange’s peer-to-peer trading platform supports local currencies from multiple countries, including the Brazilian Real, Peruvian Sol, Colombian Peso, and Argentine Peso, among others.
In 2023, Binance became the first fully licensed crypto exchange in El Salvador.
Strengths: High liquidity, 400+ cryptocurrencies, advanced trading features, fiat on-ramps, multiple languages.
Withdrawal methods and commissions: Binance supports bank transfers, crypto wallet transfers, and P2P trading. Crypto wallet transfers incur network fees—dynamic charges that vary depending on market conditions. Fiat withdrawal fees, on the other hand, vary by country. For instance, transfers to the Argentine peso charge a 1% fee.
Bitso
Bitso is a crypto exchange based in Mexico that also serves the Brazilian and Argentine populations.
Strengths: 50+ cryptocurrencies, low trading fees, intuitive interface in Portuguese and Spanish, responsive customer care system, mobile app, easy registration.
Supported fiat currencies: Argentinian Peso, Colombian Peso, and Brazilian Real.
Withdrawal methods and commissions: Bitcoin withdrawals, Ethereum withdrawals, SPEI, Ripple gateway, bank transfers. SPEI, Ripple gateway, and bank withdrawals are free, but Bitcoin and Ethereum withdrawals cost 0.001 BTC and 0.0025 ETH, respectively.
Trading fees on Bitso are based on trade volume and decrease as volume increases. For volumes less than 1,500,000 MXN ($87.5k), the maker fee is 0.5%, and the taker fee is 0.65%.
Buda
Buda is a Chile-based crypto exchange focused on the markets of Argentina, Colombia, and Peru.
Strengths: 90% of their holdings are cold wallets, 99% uptime, a mobile app, and a lucrative referral program.
Supported fiat currencies: Colombian peso, Argentine peso, Peruvian sol and Chilean sol.
Withdrawals and commissions: Buda charges a fixed 0.000051 BTC per Bitcoin withdrawal. Fiat withdrawals are possible via bank transfers, with varying fees.
Buda also charges a 1.2% commission on all standard accounts, regardless of transaction volume or currency. However, it employs a tiered trading system to incentivize activity. The highest tier (tier 7) charges 0.2% for taker trades and 0.1% for makers.
Buda also has some limitations that are worth nothing.
- Only supports major cryptocurrencies, including BTC, ETH, LTC, USDC, and BCH.
- Lacks support for leading fiat currencies like the dollar.
- Lacks support for margin or leveraged trading.
Other popular exchanges in Central and South America
- Mercado Bitcoin: Largest cryptocurrency in Brazil.
- Ripio: Argentina-based popular for fiat on-ramps.
Can I buy crypto using PayPal in Central America and South America?
Using PayPal with cryptocurrency exchanges in Central and South America remains unpopular due to regulatory restrictions. However, workarounds exist. Leading exchanges like Bybit provide a peer-to-peer (P2P) marketplace that accepts PayPal as a payment method for over 700 cryptocurrencies.
This allows Bybit users to connect with sellers who accept PayPal for crypto purchases and pay them in fiat off-chain. Crypto assets are held in escrow and only released once the seller confirms they have received payment. While Bybit does not charge a deposit fee for PayPal transfers, users should be aware of PayPal’s fees, which may include currency conversion and transaction processing charges.
Last But not Least
Also, if you are interested in working with crypto and then withdrawing money to PayPal, you should try HiRiBi.
Here you will find not only reliable work with this payment giant but also high prices for exchanging your cryptocurrency. The rates reach a difference of up to +20%!
This platform is definitely worth your attention.
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