Latin American crypto-markets are constantly evolving, with Brazil surprisingly overtaking Nigeria in interest in Bitcoin. El Salvador, however, remains solidly in the lead, revealing intriguing dynamics in this cryptocurrency race. Let's decipher the latest trends and key developments in this competition for crypto supremacy.
El Salvador Keeps Its Head Thanks to Unwavering Commitment
El Salvador, a small Central American country, continues to dominate the Bitcoin interest rankings. This success is not only due to growing adoption of the cryptocurrency, but also to bold government initiatives. Recently, the Salvadoran government, in partnership with stablecoin issuer Tether, launched Freedom Visa. A citizenship-by-donation program that offers residency and a path to citizenship for those willing to donate $1 million in Bitcoin (BTC) or Tether (USDT).
Nigerian crypto-users are changing their preferences, increasingly opting for USDT stablecoin over Bitcoin. In 2022, Nigeria occupied second place behind El Salvador, but Brazil has now taken that position. Africa's largest economy, Nigeria, is relegated to third place in the Bitcoin interest rankings.
Stablecoins: Nigeria's advantage in the face of inflation
In Nigeria, stablecoins, particularly USDT, are gaining in popularity due to their link to the US dollar, offering protection against inflation and naira devaluation. This trend is reinforced by the recent increase in peer-to-peer trading rates of naira versus USDT, according to Chainalysis' Cryptocurrency Geography 2023 report.
Despite the challenges, the Nigerian crypto market remains a major transactional player in sub-Saharan Africa, posting annual growth of 9%, according to the same report. However, it is gradually losing importance to more crypto-friendly countries such as the UK, the United Arab Emirates and Brazil.
