43% of South Americans who use cryptocurrencies are looking to save money, according to a survey

Latin America is all set to ride the wave of cryptocurrencies in the world. The inhabitants of the region who have already gotten involved in the ecosystem do so, above all, to “save money for the future.”

This is one of the vast conclusions of the consulting firm Sherlock Communications, which published its fifth report entitled “Blockchain Report Latam 2024.” The analysis, which consists of 75 pages, includes a regional survey that reflects the climate of opinion among Latin Americans regarding digital assets.

The survey was conducted in February 2024 with 3,438 people from six Latin American countries: Argentina (474), Chili (460), Colombia (407), Brazil (827), Mexico (820) and Peru (450). The results aim to understand what “lies behind the adoption and non-adoption of cryptocurrency investment in Latin America.”

Among the reasons why one decides to make the leap into the industry, the most repeated answer is “save money for the future”, with 43% of those surveyed having experience investing in cryptocurrencies. One step below, 38% mentioned that it offers them the possibility of “increasing their income”.

In a region with variable inflation rates, 26% of South American investors said they are looking for “Protect my assets from inflation and financial instabilityIn Argentina, as CriptoNoticias reported, inflation in 2023 exceeded 200%. In that country, 36% agreed with this statement.

32% gave a more financially sophisticated reason in the region, as that group said they invested in digital assets to “diversify their portfolio.” That reason exceeded 40% in Argentina and Brazil, compared to 18% in Chile.

The difficulties and setbacks in adoption

In the panel designed by the consultancy, half of the respondents (48%) reported that they have some experience investing in cryptocurrencies. But there is a revealing fact: 60% of them stopped doing so for various reasons.

According to the report, some found it too confusing (12%), others lost money (8%), while another group reported that they no longer invest (9%), despite having made money with cryptocurrencies.

In contrast, the majority of opinions that answered negatively to the question if they used cryptocurrencies did so because “I don’t understand enough about it” (28%) and because “I’ve never considered it” (10%). These percentages reach 49%if you include those who find it “too confusing.”

Mexicans were the most likely to refrain from trading, with 52% of non-users citing lack of information, compared to 43% in Peru.

Fears about the security of their money were a concern for 31% of non-users represented in the sample. This proportion was higher among Brazilians (42%) who leaned towards this statement versus 24% of Argentine non-crypto investors surveyed.

That is to say Half of those surveyed have some degree of ignorance ecosystem and lacks a formed opinion, which poses a challenge for the industry. In Chile and Mexico, the figures are somewhat higher, where 32% responded that they do not understand cryptoassets.

One in five respondents in the region (19%) reported that they currently have cryptocurrency holdings, with the highest investment rates in Argentina (31%) and Brazil (24%). Chile had the lowest number of investors, at 13% of survey participants.

Resistance to adoption is notably stronger in Brazil, where 12% of our sample said they would never invest.

The lack of resources was also an important reason for avoiding such investments. Three in ten people said they do not use digital currencies due to lack of money. Argentina (33%) and Brazil (32%) led this opinion, while it was lower in Mexico, where lack of funds was cited by only a quarter (25%).

The benefits, according to South Americans

Of all those who have ever adopted cryptocurrencies, almost half (44%) of those with experience in digital assets reported having made profits, especially in Argentina (52%). This is logically in line with the devaluation of the national peso and the rise in inflation.

On the other hand, 38% valued the possibility of “accessing my investment from anywhere, without depending on others,” according to the survey conducted in February 2024. And the privacy of transactions was also cited as a personal advantage by 33% of investors.

In third order, the power to “stand out as benefits”receive payments for my work”, a relevant attribute for a community freelance which is growing year after year in the region. It was also mentioned that there were those who earned “cryptocurrencies by playing video games or posting on social networks”, or who benefit from “making payments with lower transaction fees”. These reasons accounted for 27% of the selected responses.

The climate favorable to regulations

The vast majority (83%) of Latin Americans expressed their desire for governments and authorities to get involved in disseminating official information on the use of cryptocurrencies.

In the region, 73% of those surveyed agreed with the phrase “We need more regulation on cryptocurrencies in my country.” Four out of five Peruvians expressed the same opinion, while in Argentina only a little more than half (52%) shared the same opinion. This reveals the country’s high level of distrust in its authorities.

There was a curious division regarding the Official adoption of cryptocurrencies at the national level.

While an average of 41% of respondents agreed that “Cryptocurrencies should be an official currency in my country,” just over half (51%) agreed with the statement: “My country should protect traditional currency rather than consider cryptocurrencies.”

Despite this view, the majority of those surveyed reject the idea that cryptocurrencies “are a fraud” and opposed their ban, with 61% of responses in that sense at the regional level.

Furthermore, in Latin America there is a strong belief that Central Bank Digital Currencies (CBDCs) can help fight corruption because they are traceable, with two out of three respondents agreeing with this statement.

However, many felt that these types of currencies offered the government a means to monitor them. More than half (56%) of the sample considered CBDCs to be “a way for the government to monitor my spending habits,” with 64% in Colombia endorsing this view, compared to 48% in Argentina.

Along the same lines, one in three (34%) respondents in the region agreed that “A digital currency is an invasion of my privacy.”

FOMO and techno optimism

“FOMO” is a pathology that is described when one perceives that others could be having rewarding experiences from which one is absent. Some of this occurs with cryptocurrencies in Latin America.

55% of respondents across the region felt that “I am being left behind because I don’t understand cryptocurrencies,” a sentiment that was most strongly reflected in Peru (67%) and with less concern in Brazil, where only 47% agreed.

According to the research, this type of lack of understanding can translate into fear, with 65% of respondents agreeing that “investing in cryptocurrencies is risky because I don’t understand enough.”

On this point, 65% of Latin Americans surveyed expressed that “Mass adoption of cryptocurrencies will increase exclusion for those who do not understand them”.

In general, a plausible hypothesis for FOMO in cryptocurrencies would arise from the fact that the technology used by Bitcoin (BTC) enjoys a high reputation in the region.

In the countries surveyed, 61% of the sample agrees that blockchains can transform the way governments maintain data. health records. In addition, there is a 59% who believe that they can help underdeveloped communities or send donations (60%).

Perhaps the most striking point here is the political possibilities. 54% of respondents in Latin America believe that this technology could make elections more reliable through electronic records. This sentiment was strongest in Peru, with 65% of the responses.