Cryptocurrencies advance moderately in the Peruvian market

Cryptocurrencies are gaining more and more relevance in Latin American countries such as Argentina, Brazil, Venezuela, among others; although in Peru, only 1.2 million citizens have any of these virtual currenciesaccording to the company chainalysis.

Likewise, the traded volume increased from 7% in 2021 to 17% in 2022clarifies the exchange firm Buda.

“Peru is in the top fifth of the highest crypto adoption rates worldwide. At the Latin American level, it is in fourth place. There is a relevant use, but there is still a lot to grow,” he said. matias romerocountry manager of goodbit in Peru, to the Republic.

adverse context

However, this year has not been the best for these digital assets. They have failed to match the trend of last season and the bankruptcy of the American platform FTX – one of the largest cryptocurrency companies in the world – and the subsequent accusation of fraud and money laundering against its founder, Sam Bankman-Fried, have caused distrust in this type of transaction.

“2021 was a year of growth, the crypto market was in an upward trend at the price level. For example, bitcoin reached an all-time high of $69,500 per unit.explained Carlos BernosBuda’s country manager.

However, for this 2022 there was a significant drop compared to last year.

“This causes certain users to liquidate their positions and exit, as well as new ones to enter,” he added.

In Peru, it is worth noting that there are three regions that led the largest transactions in the country by 2022: Lima (57.94%), Arequipa (11.16%) and Ica (5.75%).

For this year, the business in the country projects to be one of consolidation and accumulation after the low season and flat prices in the market, the businessmen affirm.

“New pronouncements are expected, which could give it greater institutionality given certain conditions”Bernos reiterated.

Use of cryptocurrencies

Bitcoin was created in 2008 under the registration of the blockchain technology and, currently, there are more than 10,000 types of digital currencies around the world. In Peru, you can also find platforms that allow people to exchange soles or dollars for a cryptocurrency of interest and vice versa.

This digital money can be used as a means of payment, an investment alternative or for remittances. One of its most prominent uses is international transfers, since the traditional ones usually take time and have high prices of 5% or 10% of the shipment. “With crypto, shipments are made in a matter of seconds with a very low fixed cost, often less than S/1”Romero explained.

Greater transparency in the use of cryptocurrencies

Philip Dybvig, one of the winners of the 2022 Nobel Prize in Economics, commented that cryptocurrencies and crypto banks should not have “a free pass”, but be regulated like traditional investments and institutions to avoid putting the money of small investors at risk. .

Along these lines, he stressed that there is no good use case to prove that they are “really useful for the economy”, but there is for people who make anonymous payments for illegal activities.

“I tell my students that the only known equilibrium price for bitcoin is zero. If people think bitcoin is worthless, it will be worthless.”he added.