Report: Inflation drives more crypto trading volume in Latin America

TL:DR Breakdown:

• Crypto trading volume from Latin American nations has been making new highs according to LocalBitcoins.
• The increasing volume comes amid the economic uncertainties in the nations.

Recent market information from the popular peer-to-peer Bitcoin exchange, LocalBitcoins, confirmed a growing interest in Bitcoin (BTC) and crypto trading in Latin American countries and some other inflation-hit nations. The exchange posted Colombia and Venezuela among the top five Latin American nations with high Bitcoin trading volume. The economic uncertainties, which were fueled by the Coronavirus pandemic, are causing many residents in these countries to consider Bitcoin for monetary activities.

Crypto trading spikes on LocalBitcoins 

As LocalBitcoins reported, its biggest market remains Russia. The country contributed about 17.4 percent of global crypto trading volume on the peer-to-peer exchange. Venezuela and Colombia followed the list with 12.3 and 11.3 percent trading volume, respectively. Other countries like Nigeria and the United Kingdom reported a growing interest in digital currency trading, including Chile, Argentina, and Brazil, according to the exchange.

The exchange related the increase in cryptocurrency trading to the inflation or economic uncertainties facing the countries. Last year, Venezuela was rated as among the most inflation-hit nations globally, after which Bitcoin trading began surging in the country. LocalBitcoins added that the harsh regulation and capital controls in Russia could be the main factor causing more interest and adoption in the crypto.

Crypto adoption in Latin America

Also, Argentina, Brazil, and Chile are currently facing economic uncertainties due to the recent Coronavirus outbreak. These countries are also showing huge interest in trading Bitcoin. Judging by the market report, it’s safe to mention that Latin American nations, especially Venezuela, are leading the pace to cryptocurrency adoption, although there’s no clear regulatory framework to govern the trades.