Latin American crypto markets are constantly evolving, with Brazil surprisingly overtaking Nigeria in Bitcoin interest. El Salvador, however, remains firmly in the lead, revealing intriguing dynamics in this cryptocurrency race. Let us break down the latest trends and key developments in this competition for crypto supremacy.
El Salvador keeps the lead thanks to a strong commitment
El Salvador, a small Central American country, continues to dominate Bitcoin interest rankings. This success is not only due to growing cryptocurrency adoption, but also to bold government initiatives. Recently, the Salvadoran government, in partnership with stablecoin issuer Tether, launched the Freedom Visa. A citizenship-by-donation program, it offers residency and a path to citizenship for those willing to donate one million dollars in Bitcoin (BTC) or Tether (USDT).
Stablecoins: Nigeria’s asset against inflation
Nigerian crypto users are shifting their preferences, increasingly opting for the USDT stablecoin over Bitcoin. In 2022, Nigeria held second place behind El Salvador, but Brazil has now taken over this position. Africa’s largest economy, Nigeria, has been relegated to third place in the Bitcoin interest ranking.
In Nigeria, stablecoins, particularly USDT, are gaining popularity due to their peg to the US dollar, offering protection against inflation and the devaluation of the naira. This trend is reinforced by the recent rise in peer-to-peer trading rates of the naira against USDT, according to the 2023 Geography of Cryptocurrency report by Chainalysis.
Despite the challenges, the Nigerian crypto market remains a major transactional player in Sub-Saharan Africa, posting 9% annual growth according to the same report. However, it is gradually losing ground to more crypto-friendly countries such as the United Kingdom, the United Arab Emirates, and Brazil.
