Latin America Favors CEX Over DeFi
A new Chainalysis’s report indicates that Latin American crypto users favor centralized exchanges (CEXs) over decentralized platforms, with the region experiencing the highest CEX activity ratio globally, with some countries showing a strong preference for CEXs.
Venezuela dominates crypto volume with 92.5% on centralized exchanges, driven by its humanitarian crisis and crypto aid use. Colombia favors CEXs at 74%, while Argentina leads the region with over $85 billion in estimated crypto transaction volume from July 2022 to June 2023.
The data indicates a significant disparity in activity between DEXs and CEXs globally, with Latin America favoring centralized crypto gateways over global trends.
Experts attribute lower crypto literacy in Latin America to a lack of access to DeFi tools and lower crypto literacy. However, crypto use is driven by economic needs, and adoption is expected to rise due to high inflation and unstable currencies. As market infrastructure matures, DeFi and DEX could gain traction in Latin America, with the unbanked relying on centralized crypto access ramps.
(With inputs from Shikha Singh)
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