Latin America’s Unprecedented Centralized Exchange Dominance
The post Latin America’s Unprecedented Centralized Exchange Dominance appeared on BitcoinEthereumNews.com. In a recent report by blockchain analytics firm Chainalysis has revealed that Latin American cryptocurrency users display a strong inclination towards centralized exchanges (CEXs) compared to their global counterparts. This preference for CEXs is one of the key findings in Chainalysis’ examination of cryptocurrency activity in the region, shedding light on the unique dynamics at play in Latin America’s crypto economy. Latin America currently ranks as the seventh-largest cryptocurrency economy worldwide, lagging behind regions such as the Middle East and North America (MENA), Eastern Asia, and Eastern Europe. While it may not be the largest, the region stands out for its distinctive preference when it comes to cryptocurrency exchanges. According to the Chainalysis report, Latin American crypto users have a pronounced inclination towards centralized exchanges, often referred to as CEXs. This preference for CEXs is more significant in Latin America than in any other region studied by Chainalysis. Additionally, the region tends to lean away from institutional activity compared to other parts of the world. A closer look at Latin America’s crypto preferences and rankings Within Latin America, some countries exhibit particularly pronounced preferences for CEXs over decentralized exchanges (DEXs), defying the global averages. Notably, in Venezuela, the preference for CEXs is remarkably high at 92.5%, while DEXs garner a mere 5.6% of user preference. The report highlights that Venezuela’s unique surge in crypto adoption can be attributed to a “complex humanitarian emergency.” In 2020, amidst the COVID-19 pandemic, cryptocurrencies played a pivotal role in directly aiding healthcare professionals in the country. Traditional payment methods faced challenges due to the government’s reluctance to accept international aid for political reasons. This compelled Venezuelans to turn to cryptocurrencies as an alternative means of supporting essential services. Colombia, another country in Latin America, demonstrates a significant preference for CEXs, with 74% of users…
The post Latin America’s Unprecedented Centralized Exchange Dominance appeared on BitcoinEthereumNews.com.
In a recent report by blockchain analytics firm Chainalysis has revealed that Latin American cryptocurrency users display a strong inclination towards centralized exchanges (CEXs) compared to their global counterparts. This preference for CEXs is one of the key findings in Chainalysis’ examination of cryptocurrency activity in the region, shedding light on the unique dynamics at play in Latin America’s crypto economy. Latin America currently ranks as the seventh-largest cryptocurrency economy worldwide, lagging behind regions such as the Middle East and North America (MENA), Eastern Asia, and Eastern Europe. While it may not be the largest, the region stands out for its distinctive preference when it comes to cryptocurrency exchanges. According to the Chainalysis report, Latin American crypto users have a pronounced inclination towards centralized exchanges, often referred to as CEXs. This preference for CEXs is more significant in Latin America than in any other region studied by Chainalysis. Additionally, the region tends to lean away from institutional activity compared to other parts of the world. A closer look at Latin America’s crypto preferences and rankings Within Latin America, some countries exhibit particularly pronounced preferences for CEXs over decentralized exchanges (DEXs), defying the global averages. Notably, in Venezuela, the preference for CEXs is remarkably high at 92.5%, while DEXs garner a mere 5.6% of user preference. The report highlights that Venezuela’s unique surge in crypto adoption can be attributed to a “complex humanitarian emergency.” In 2020, amidst the COVID-19 pandemic, cryptocurrencies played a pivotal role in directly aiding healthcare professionals in the country. Traditional payment methods faced challenges due to the government’s reluctance to accept international aid for political reasons. This compelled Venezuelans to turn to cryptocurrencies as an alternative means of supporting essential services. Colombia, another country in Latin America, demonstrates a significant preference for CEXs, with 74% of users…
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