- Frontera by Espacio Cripto
- Posts
- 🌎 Latam crypto recap 2024
👋 Hi welcome to Frontera, the newsletter dedicated to showcasing the reality of crypto in Latam. Join industry leaders from Binance, Crypto.com, dYdX and others to understand how Latin America has become one of the most dynamic and promising markets in the crypto world and how you can address this market.
Frontera subs last edition: 105
Frontera subs this edition: 106
If you want to build products, invest, or grow in LATAM, this is your place.
You can listen the full episode here.
This edition is presented by Bando
🚀 Unlock seamless Web3 spending with Bando: The On-chain Spending Protocol!
Easily integrate our fully customizable widget in minutes to enable your dApp, Wallet, or AI Agent to offer users the ability to spend tokens on gift cards, airtime, bills, in-game items, and more.
Ready to bring this game-changing solution to your platform?
🔎 Latam crypto recap 2024 and expectations for 2025
Welcome to the first Frontera of the year 😎 Today we want to share with you a recap of the status of Latam in 2024 and our expectations for 2025.
Let's start working and go to the analysis.
Latam crypto recap 2024
2024 was a great year for LATAM in terms of crypto adoption. Latin America has become a global leader in crypto adoption, ranking second worldwide, according to Chainalysis' 2024 report. The region had YoY growth of 42.5%.
Also, four LATAM countries are in the top 15 of crypto adoption:
Brazil (10th)
Venezuela (13th)
Mexico (14th)
Argentina (15th)
Economic instability in Latin America has driven many to adopt cryptocurrencies like Bitcoin and stablecoins. Youth played a key role in educating others, while improved internet connectivity fueled adoption, turning crypto into a tool for financial innovation and global market access.
As we saw in the Chainalysis report, countries in the region have made significant progress in regulating the crypto market, with Brazil leading the way with its CBDC project "DREX", being one of the priority markets for Coinbase and beginning to take steps such as considering Bitcoin reserves for the country.
Similarly, Argentina has introduced a bill to regulate crypto-assets, prioritizing legal security for businesses and investors while maintaining user freedom. This reflects a regional trend toward creating balanced regulatory frameworks that foster growth while protecting consumers.
This hasn't been the only measure taken by Argentina; since Milei assumed the presidency, new regulations have been established on taxes, mandatory registration for crypto exchanges and service providers, tokenization of assets, and there are still more reforms on the list.
Other countries have seen slower progress. Mexico, for example, has had its Financial Technology Institutions Law (LRITF) in place since 2018, but challenges remain in terms of implementation and clarity. Colombia, although it has not made significant regulatory progress in 2024, has shown a commitment to blockchain innovation, as evidenced by the Blockchain Summit Latam.
Meanwhile, Bolivia has shifted its stance on cryptocurrencies; after years of prohibition, the Central Bank of Bolivia updated its regulations, opening the door for a modernized crypto market.
As these regulatory developments unfold, the region's crypto ecosystem has also witnessed significant product innovations:
Bitso, one of Latin America's leading crypto platforms, recently launched a Web3 wallet that allows users to interact with over 2,000 tokens, NFTs, and decentralized applications.
MetaMask introduced a debit card in Mexico, Brazil, and Colombia, allowing users to spend crypto-assets at any merchant accepting MasterCard.
Mercado Libre launched "Meli Dólar", a new cryptocurrency, initially adopted in Mexico and Brazil, showcasing the increasing penetration of digital currencies in everyday commerce.
Companies like Bando are contributing to the region's adoption by exploring new ways to use crypto.
The rapid growth of the Web3 ecosystem in Latin America has been accompanied by an increase in active users.
According to CeLatam, the number of active users in the region's Web3 ecosystem grew by 30% in 2024 compared to the previous year and the volume of crypto transactions also surged by 40%, as reported by Sherlock Communications, driven by the need for a reliable financial alternative amid high inflation and devalued local currencies. Specifically, Argentina and Venezuela have seen a surge in stablecoin use as a hedge against inflation and for international transactions.
As regulatory frameworks continue to evolve, Latin America is well-positioned to lead the way in crypto adoption, leveraging its unique economic challenges to drive innovation, financial inclusion, and access to global markets.
📰 Latam Crypto News 📰
🇧🇷 Brazil
The Brazilian real ended 2024 as the most devalued major currency globally, losing 21% against the U.S. dollar. By December, the dollar surged to 6.12 BRL, eclipsing declines in other emerging currencies like the Mexican peso (-16%) and Turkish lira (-16%).
Why did the real fall?
1️⃣ Global dollar strength:
High U.S. interest rates, driven by robust economic growth and persistent inflation, attracted global capital and Donald Trump’s election in November further strengthened the dollar through protectionist policies and fiscal incentives.
2️⃣ Brazil’s domestic struggles:
Brazil's inflation reached 4.87% in 2024, exceeding targets. Market skepticism about Lula's fiscal policies deepened after the announcement of a package of measures in November, causing the real to lose 7.3% of its value. Even with the Selic rate increasing to 12.25%, concerns about inflation persisted.
Outlook for 2025
The Central Bank projects the real at 5.85 per dollar by year-end. However, U.S. monetary policies, Brazil’s inflation trajectory, and political stability will be decisive.
President Lula has emphasized fiscal responsibility, but market trust remains shaky. Analysts say effective fiscal execution and controlling inflation are crucial to economic recovery.
As 2025 begins, the real’s future hinges on balancing domestic reforms with global economic pressures.
🇸🇻 El Salvador
El Salvador aims for full bitcoinization by 2025, with President Bukele's plan to install a Bitcoin node in every home, enhancing decentralization and financial sovereignty.
“A bitcoin node in every house” is one of President BUKELE’s New Year Resolutions. A decentralized nation state model.
The US’s dilapidated infrastructure needs $ trillions. Trump won’t get approval to buy $1 trillion in BITCOIN
Move to El Salvador & experience true freedom.
— Max Keiser (@maxkeiser)
12:41 PM • Dec 24, 2024
🇸🇻 El Salvador holds over 6,000 BTC
El Salvador now ranks 6th globally in Bitcoin reserves, holding 6,000.77 BTC worth $568M. Bukele’s strategy strengthens Bitcoin as a national reserve asset.
🇲🇽 Mexico
🇲🇽 Avelacom Connects Mexico & US with Low-Latency Routes
Avelacom expands its network to link financial markets in Mexico and the US, enabling faster cross-border trading with new PoPs and low-latency infrastructure.
🇦🇷 Argentina
🇦🇷 Crypto deregulation in Argentina still pending
Alejandro Rothamel from Ripio highlights optimism about Milei’s deregulation policies but notes no major crypto-specific actions yet. Progress depends on gradual and precise regulation.
Why does it matters? Argentina’s approach to crypto regulation could set a precedent for other nations navigating state involvement in decentralized technologies.
🇵🇦 Panama
From April 22-24, Panama will host global leaders, startups, and experts to explore blockchain's impact on business, banking, logistics, and digital economy at the Panama Convention Center.
Want to share news or request a topic?, send them to frontera@espaciocripto.io