Latin Americans have started using cryptocurrency more since the start of the COVID-19 pandemic, Decrypt reports. Citing Chainalysis, a blockchain analytics company, the source says that an increase in cryptocurrency adoptions is most likely the result of the unsatisfactory operation of traditional banking institutions in the region.
According to the source, both individuals and companies find it easier to use cryptocurrencies rather than deal with traditional banks. For firms, crypto helps avoid import fees and commission on wire transfers. In turn, for individuals, digital assets become a more reliable way for savings and investment. In addition, the gig economy also encourages the use of crypto over a regular bank account, Decrypt says.
It is not just people in Latin America who started using cryptocurrency more often during the COVID-19 though. People around the world have stopped relying on cash payments as much. This was due to worries that money would spread the virus, which is why digital payments increased. Coin Telegraph says that institutions, for instance, turned to digital assets because they consider them less risky than fiat currencies.
In the same report, Coin Telegraph mentions that in spring this year the number of Bitcoin ATM locations all over the world increased to more than 8,000. Moreover, stablecoins attracted more interest from traders and investors, and Central Banks started developing their own digital currencies.