Cryptocurrencies are gaining ground in Latin America amid regulatory gaps and controversies

Cryptocurrencies are gaining traction in Latin American economies, whether for investing, sending remittances, protecting against inflation, or making payments; however, their adoption is not yet widespread and their use remains niche.

This report is part of a regional investigation by Grupo de Diarios América (GDA), a leading media network in Latin America to which El Comercio belongs. The coverage compares the situation of cryptocurrencies in several countries in the region to identify similarities and differences in their regulation, adoption, and the challenges they pose for authorities, markets, and users.

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The advancement of cryptocurrencies is occurring in an uneven regulatory landscape. While some countries have developed specific legal frameworks to oversee crypto assets, others maintain partial regulations or lack comprehensive legislation.

At the same time, in most countries, authorities have linked the use of these digital assets to investigations into money laundering, fraud, and other illicit activities, keeping the debate about this industry open in the region.

Additionally, while their use is not prohibited, cryptocurrencies are not legal tender in any country in the region, leaving their acceptance as a means of payment on a voluntary basis.

One of the few exceptions was El Salvador, which in 2021 passed the Bitcoin Law, legislation that granted legal tender status to Bitcoin, the world’s most popular cryptocurrency.

However, as part of the commitments made by the country to the International Monetary Fund (IMF), the regulations were reformed with the goal of removing this cryptocurrency from the legal tender status, a step that was completed in 2025.

The Central American country created a National Digital Assets Commission (CNAD) whose functions include establishing and overseeing compliance with the regulations and standards applicable to digital assets in El Salvador. It also grants licenses and authorizations to companies and platforms related to digital assets and protects consumers and users from fraudulent activities.

However, in some markets, knowledge and technological barriers still persist, hindering wider adoption, as it is necessary to understand the use of digital wallets, exchange platforms, and other unfamiliar mechanisms.

Cryptocurrencies are digital currencies that use cryptography to secure transactions and ownership for those participating in exchanges. They are not controlled by any institution, do not exist physically, and do not require intermediaries; only direct users.

Although cryptocurrencies have gained traction in Latin America in recent years, their adoption is far from widespread. Their use is concentrated in activities such as investment, despite often being considered speculative instruments; remittances; and protection against inflation and some commercial transactions.

Venezuela is one of the most striking examples. There, cryptocurrencies, and especially stablecoins (pegged to the value of a currency like the dollar), are gaining ground as an alternative to the physical dollar and as a way to cope with inflation and the devaluation of the local currency.

While their use is not widespread, it is common in everyday life, particularly in the informal economy and for remittances. In other words, they are used for payments between individuals and for the purchase of goods and services. Their use is more closely tied to economic necessity and financial survival.

Similarly, in Argentina, cryptocurrencies tend to be seen as a store of value and a means of saving due to currency devaluation. Although there is widespread adoption as a financial instrument, its use is still limited in everyday life.

In other markets, such as Brazil, Mexico, and Chile, they have also begun to consolidate as mechanisms for making international payments and transfers, although still in a limited way and concentrated in certain sectors of the economy.

Fábio Plein, from Coinbase Brazil, stated that stablecoins in Brazil have become a real payments infrastructure. In practice, it is possible to acquire everything from high-value goods, such as real estate and luxury vehicles, to e-commerce products and travel, often through platforms that perform the conversion to local currency transparently.

The Brazilian Association of Cryptoeconomy (ABCripto) explains that this expansion is facilitated by crypto debit cards and payment processors that eliminate the risk of volatility for the merchant.