Cryptocurrencies have been gaining increased attention in recent years, and this is especially true in Chile. Global consultancy Bain & Company conducted a survey and discovered that 80% of the respondents were women, and that investment in crypto was the third most sought-after asset.
Crypto Gaining in Popularity in Chile in 2022
Latam countries have been impacted by high inflation rates and devaluation of their currencies. As a result, many are turning to cryptocurrencies as a form of investment. Chile is one of the countries with the highest inflation, and cryptocurrencies have become a popular choice for many looking for ways to invest.
The survey was conducted by Bain & Company, a global consulting firm based in Boston and London. They asked the question about the best investment opportunities for Chile in 2022, with 23% of respondents selecting cryptocurrency as their preferred option. Mutual funds were ranked first with 36% of respondents selecting this option, while 24% of respondents said they have invested in real-estate.
Why Crypto is Becoming More Popular
The reasons for this growth in popularity of crypto can be attributed to the potential returns investors can get, even though the industry suffered a setback in 2022 due to the collapse of Terra. Two events that caused particular alarm were the bankruptcy of FTX and the resignation of its CEO. Marcial Rapela, a Partner of Bain Chile, expressed:
This figure is consistent with recent trends that digital currencies have been increasingly popular due to their high profitability at certain times.
Despite its low volatility and associated risk, many investors are still choosing traditional investment options. However, crypto was significantly more popular than traditional options such as bonds and stocks, which were preferred by 21% and 19% of respondents respectively.
Chile is taking steps to ensure regulatory clarity for crypto investors. In October, a fintech law was passed in the country, which analysts believe will increase investment in the cryptocurrency industry in the future. Also, after years of opposition to private banks, cryptocurrency exchanges have been allowed to open bank accounts within the country. Buda, the first national exchange to do this, has opened the door for others.
What is your opinion on the growth of cryptocurrency in Chile as an investment tool? Leave a comment in the section below.
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