Latin America’s Crypto Adoption by Country and One Common Denominator: The Inflation-Crypto Link
Latin America has become one of the most dynamic regions for cryptocurrencies. Crypto adoption by country is mostly shaped by common denominators such as inflation, social realities, and political pressures.
While some Latam countries rely on institutional leadership, others turn to grassroots solutions born out of necessity. Overall, and although the specific circumstances of each country present unique features, there is one common denominator across the region: inflation consistently emerges as the main driver of digital asset adoption.
Insights from Sherlock Communication’s Blockchain Latam Report 2025 show how remittances, financial inclusion, and regulation influence crypto adoption trends in the region. From Argentina and Venezuela’s hyperinflation to the stability of Chile and Peru, the search for protection against devaluation pushes Latin Americans toward crypto as a store of value.
Necessity as Driver of Crypto Adoption: Argentina and Venezuela
Latin America’s harshest economic climates have transformed digital assets from speculative investments into survival tools. Nowhere is this more evident than in Argentina and Venezuela, where persistent inflation and strict currency controls have forced citizens to embrace crypto as a practical alternative to fragile traditional local systems.
These two markets illustrate how crypto adoption by country is often born out of necessity rather than choice. Stablecoins, Bitcoin, and blockchain-based payment solutions are no longer niche instruments but vital mechanisms for protecting income, enabling commerce, and sustaining daily life under extreme financial pressure.
Argentina: A Flight to Access Digital Dollars
Argentina’s inflation surged to 211% in 2023, staying above 100% year-on-year into 2024. In addition, a monthly USD 200 cap on official dollar purchases leaves savers with few options, pushing them toward digital equivalents. As a result, stablecoins pegged to the US dollar have emerged as popular options to protect Argentinean’s purchasing power and bypass governmental currency controls.
This is so, not just for households but also for businesses: SMEs, for instance, convert overseas income into crypto, precisely to bypass these government currency controls. Hence, digital dollars became a survival strategy across households and commerce. Bitcoin is gaining traction in the country as a longer-term hedge, with BTC volumes growing three times as fast as stablecoins in 2024. In turn, small businesses are increasingly accepting stablecoins to protect supplier payments from value erosion.
In this context, Argentina became the leading Latin American country in terms of receiving values in crypto, overtaking Brazil even in spite of having 20% of its population. The country —that already behaves in practice as a “shadily dollarized” crypto economy— has found in stablecoins a reliable alternative to access dollars. This type of crypto (USDT, USDC and DAI) are the main hedge for wealth preservation in the country, accounting for roughly 78% of crypto deposits in 2024. Hence, crypto adoption in Argentina is grassroots, not bank-led, with a 93% year-on-year rise in crypto-app downloads.
Venezuela: Crypto as a Lifeline
In Venezuela, the sharp devaluation of the Bolivar —coupled with relentless inflation— have turned crypto into a lifeline rather than a luxury. Stablecoins pegged to the US dollar act as digital dollars, protecting Venezuelans’ purchasing power and enabling everyday purchases when the local currency falters.
Amid economic turbulence and political uncertainty, crypto activity has surged in the country, with transaction volume rising 110% year-on-year in Q2 2024 —the fastest growth in Latin America. Stablecoins are the backbone of this shift, accounting for nearly half of small crypto transactions, while Bitcoin is emerging as a longer-term hedge in a tightening economic environment.
Remittances also remain a crucial driver: with around 20% of its population living abroad due to political and economic crisis, roughly 9% of remittances arrive via crypto. Venezuelan entrepreneurs are also using blockchain to build stablecoin-based payment apps and educational initiatives, turning crypto from an experiment into an everyday tool for households and businesses.
Remittances and Inflation Hedges: The Colombian Case
To continue analyzing crypto adoption by country in Latin America, it’s interesting to explore what’s the main driver behind this adoption in Colombia. Experiencing a continuous expansion of its crypto market, this country sits at the crossroads of inflation and remittance flows. About 5 million Colombians —roughly 10% of the population— engage with crypto as the peso continues its slide. Stablecoins in particular offer a cheaper and faster alternative for remittances and a way to preserve value, illustrating crypto adoption by country in practical terms.
Hence, the main drivers of crypto adoption in Colombia are high inflation and remittances. On the one hand, inflation cooled after the 2022 peak of around 13%, yet the depreciation of the peso in prior years and inflation rates well above the central bank’s target resulted in sustained demand for digital assets among Colombians.
On the other hand, remittance flows topped USD 10 billion in 2023, representing around 2.8% of its GDP. While traditional transfers charge 5–6% in fees, crypto presented an opportunity to reduce such costs, making crypto remittances appealing and turning Colombia into a prime market for crypto-powered cross-border payments. As a result, crypto remittances via stablecoins continues to grow, as stablecoins underpin fast cross-border payments —as a matter of fact, the exchange Bitso decided to expand its remittance services in Colombia after its success in Mexico.
On the same line, altcoins and memecoins join Bitcoin as a hedge, signalling a broader crypto ecosystem. Freelancers and foreign‑currency workers favor crypto payments to avoid delays and conversion costs, illustrating adoption expanding beyond payments.
Crypto Adoption Beyond Inflation: Chile and Peru Cases in Analysis
So far, Argentina, Venezuela, and Colombia all showcase this crypto adoption-inflation link. However, in order to better understand the crypto landscape in the region and what’s the main driver behind adoption, an important question comes up: what happens with crypto adoption in the region when inflation is not the main driver?
As we’ve seen, inflation remains a dominant driver of crypto adoption across Latin America, but it is not the sole influence. In economies that are relatively more stable, there seem to be other motivations driving adoption, shifting from pure necessity towards a more nuanced blend of investment, technological curiosity, and a hedge against broader uncertainty. This can be observed when analyzing crypto adoption by country and, for that, Chile and Peru are relevant cases in point that can give us some insights.
Chile: Persistent Interest Amid Stability
Chile stands out as a market where crypto interest remains despite improved economic conditions: although inflation has fallen from its 2022 peak —reducing the urgency for inflation hedges— crypto adoption has still grown moderately over the past year in the country, thereby remaining a mid-level market globally.
This persistent interest in crypto signals a maturing market. Chileans view digital assets as long-term investments and a gateway to financial innovation, further supported by fintech startups —that experienced a 16% increase in 2024 as compared to the previous year— and a proactive regulatory framework signalled by a proactive, yet cautious, approach.
This infrastructure readiness could sustain steady growth, even as macro conditions stabilize. The regulation-friendly environment and a tech-savvy population position Chile as a bellwether for Latin America’s more stable markets. In short, Chile shows adoption can be both strategic and opportunistic, blending curiosity with practical use cases in payments, savings, and investment.
Peru: Hedging Against Uncertainty
Peru’s crypto story shows inflation isn’t the only driver in the region, suggesting crypto adoption could move beyond financial urgency needs in Latin America.
Peru’s crypto user base expanded considerably over 2024-2025, with the country ranking among Latin America’s top 10 crypto markets. In fact, as of early 2025, it was estimated that 3.7% of Peruvians own cryptocurrencies. However, what’s particularly interesting about this country is that, unlike most of its Latam neighbors, crypto adoption trends remained even after inflation was kept considerably low.
While Peru has maintained a relatively low inflation, about 1.28 million Peruvians own cryptocurrencies. Now, what is then the driver behind this sustained interest in crypto among Peruvians? As shown by Sherlock Communications 2025 Blockchain Report, crypto adoption is indeed less driven by hyperinflation concerns. The move is instead driven by broad economic uncertainty and a preference for dollar-denominated value storage.
Dollar-pegged stablecoins account for around 12% of crypto holdings on some platforms, signalling a strong demand for a stable store of value. This evidence shows how many Peruvians see crypto —and specially stablecoins— as a hedge or investment, even with no hyperinflation breathing down their necks, which suggests a more deeply rooted interest in dollar-denominated crypto value storage despite low domestic inflation.
As a result, the fintech ecosystem is also expanding, with crypto wallets increasingly integrated into traditional banking —potentially broadening adoption beyond current users.
Overall, Peru illustrates crypto adoption’s adaptability —and, similarly to Chile— it suggests a more rooted interest in crypto assets that has grown beyond inflation-specific concerns. Even with low inflation, uncertainty and currency preferences sustain demand for dollar-denominated assets, reinforcing crypto’s role as both hedge and savings vehicle, and showing how innovation can also thrive in relatively stable Latin American economies.
Conclusion: The Inflation-Crypto Lens Across Latin America
Latin America’s crypto journey shows inflation as a dominant driver, but not the only one. As we’ve seen across Argentina, Venezuela, Colombia, Chile and Peru, crypto adoption by country spans from crisis survival to strategic investment, shaped by remittances, regulation, and financial inclusion. The Blockchain Latam Report 2025 provides the granular data behind these patterns.
Argentina and Venezuela illustrate crisis-driven adoption, with stablecoins acting as digital dollars and remittance flows boosting usage. In Colombia, in turn, remittances and altcoins co-exist with Bitcoin as a hedge. These examples showcase that inflation and economic instability are big drivers of crypto adoption in Latin America. But, what happens if we take inflation off the equation? Would Latin Americans still show interest in these assets? Chile and Peru complement this analysis, uncovering how Latin Americans still show curiosity and dollar-denominated hedges in more stable economic environments.
Looking ahead, the inflation-crypto link remains a useful frame, but country-specific factors will keep driving varied uses. Along with consumer interests and needs, the legal frameworks and government stance towards blockchain and crypto shall shape the future of these technologies in the region —a region that’s already evidencing blockchain technologies are actually bearing fruit in the region, even despite a lack of official governmental support.
For deeper insights on the current state of blockchain and crypto ecosystems cross eleven Latin American countries, see the Blockchain Latam Report 2025.
