Colombia ranks 4th in LATAM for Bitcoin revenues, earning $6.79 billion in 2024

According to Chainalysis’ Geography of Cryptocurrency Report 2024, Colombia has emerged as a major player in the regional cryptocurrency environment.

The country ranked fourth in Bitcoin transactions, having amassed more than US$6.788 billion during the same period.

The latest increase in Bitcoin’s value, surpassing a critical milestone of US$100,000, coincided with a government declaration by the newly elected president Donald Trump.

This development caused waves in global markets, increasing valuations for corporations with Bitcoin holdings and raising the cryptocurrency assets of countries like El Salvador.

However, the consequences of this increase go beyond the bounds of established economies and wealthy investors.

According to industry experts, Bitcoin’s soaring price and more favourable laws under the US government, alongside the potential establishment of a Bitcoin strategic reserve, poised the cryptocurrency to gain enhanced legitimacy and a growing user base.

Colombia’s rising cryptocurrency adoption

However, the Geography of Cryptocurrency Report 2024 by Chainalysis indicates the level of adoption of these digital activities in the region, with Colombia ranking fifth in the region among those who use a variety of cryptocurrencies the most, with US$28.455 million received between the second semester of 2023 and the first semester of 2024.

Although Bitcoin inflows have not yet eclipsed remittances from outside, it is worth noting that this share is greater than 50%.

With potential barriers to record remittance inflows during Trump’s presidency, the importance of cryptocurrencies such as Bitcoin may grow, providing Colombians with an appealing option for transfer and investment.

According to Juanita Rodríguez Kattah, Bitso’s country manager in Colombia, the Bitcoin record emphasizes the importance of studying and understanding the fundamentals of cryptocurrency.

The arrival at this historical price confirms that bitcoin’s value is being strengthened by the confidence and support of businesses, institutional investors, and governments around the world.”

Comparative adoption rates in Latin America

Colombia’s Bitcoin adoption rate is now at 13.7%.

In comparison, neighbouring nations have varied levels of Bitcoin engagement: Brazil has 14.2%, Argentina has 14.7%, and Mexico leads with a significant 19.3%.

However, with a boom in interest and investment in Bitcoin among Colombian consumers, these rankings may vary in the future years as consumer attitudes and legal frameworks evolve.

Stablecoins: a major player in the Colombian crypto market

Beyond Bitcoin, stablecoins have established a distinct niche in Mexico’s cryptocurrency market.

Globally, stablecoins account for 44.7% of all cryptocurrency transactions, followed by altcoins at 24.6% and Bitcoin at 22.3%.

Notably, stablecoins dominate the Colombian market, accounting for a remarkable 66% of transactions.

This distinguishes Colombia as the country with the highest relevance for stablecoins in the region, followed by Argentina (61.8%), Brazil (59.8%), and Venezuela (56.4%).

In terms of financial impact, stablecoin income in Colombia reached US$3.178 billion by June 2024, highlighting the importance of stablecoins in the country’s crypto economy.

This development suggests a strong desire among Colombian investors to find stability and security in digital assets tied to traditional currencies.

The future of cryptocurrencies in Colombia

As Colombia navigates the growing cryptocurrency landscape, it has the opportunity to strengthen its position not only as a major player in Bitcoin adoption but also as a pioneer in stablecoin usage in Latin America.

The combination of favourable regulatory settings and rising consumer demand points to a promising future for cryptocurrencies in Colombia, where people are rapidly adopting these digital assets for investment and remittance purposes.

Overall, the developments around Bitcoin and cryptocurrencies in Colombia mirror broader tendencies poised to influence the region’s financial and economic fabric, indicating a transformative moment in which digital currencies may play a vital role in determining financial futures.

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