Latin America takes global lead in preference for centralized exchanges: Report
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According to a recent report from blockchain analytics firm Chainalysis, Latin America has a distinct inclination toward centralized exchanges when compared to the rest of the world, as opposed to decentralized exchanges.
Published on October 11, Chainalysis
Therefore, crypto became a necessary form of value as traditional payments were difficult, given the government’s refusal to accept international aid, influenced by political reasons.
On the other hand, Colombia shows a 74% preference for centralized exchanges, while decentralized exchanges account for just 21.1% of their preferences.
However, Argentina leads in terms of the sheer volume of cryptocurrency transactions in Latin America, having received an estimated $85.4 billion during the 12-month period ending on July 1.
On May 5, Cointelegraph reported that Argentina’s central bank banned payment providers from offering crypto transactions, to reduce the country’s payment-system exposure to digital assets.
The monetary authority stated that the purpose of this was to subject fintech companies to the same regulations as conventional financial institutions in Argentina.
Meanwhile, three Latin American countries secured positions in the top 20 ranks on Chainalysis’ Global Crypto Adoption Index. Brazil stands at the 9th position, with Argentina following at 15th, and Mexico at 16th.
Yet, India took the top position, with Nigeria and Vietnam following in second and third place, respectively.
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