TLDR
- Latin America experienced a 63% increase in the adoption of cryptography in 2025, just behind Asia-Pacific.
- Brazil introduced a 17.5% tax on cryptographic capital gains in June 2025.
- El Salvador revised his Bitcoin policy in 2025, which makes him voluntary for businesses.
- The Panama invoice project in 2025 supports Bitcoin and Stablecoins as payment methods.
The adoption of cryptocurrencies in Latin America jumped 63% in 2025, reporting a new era for digital currencies in the region. While Latin America emerges as a leader in the world activity of cryptography, nations such as Brazil, Salvador and Panama take important measures to regulate and integrate crypto into their economies. This growing interest in digital assets resumes the financial landscape, with stablescoins and digital payments providing innovative solutions for transfer costs and economic growth.
Rapid growth in digital asset transactions
Latin America has witnessed a remarkable increase In the activity of digital assets, with an increase of 63% of transactions volumes in 2025. This growth places the region just behind Asia-Pacific, which saw an increase of 69% during the same period. According to the global index for the adoption of the cryptography of Chainalysis, Latin American countries are among the fastest adopters of blockchain technology. Many of these countries have turned to crypto to bypass the challenges posed by volatile currencies and high payment costs.
The adoption of cryptocurrencies like Bitcoin and Stablecoins was particularly beneficial for citizens in countries with unstable economies. Using digital currencies, individuals can guarantee their savings and avoid the inflationary effects of local currencies. Payment costs have also dropped because the crypto provides a more profitable alternative for cross -border payments. The growing use of blockchain technology in daily financial transactions highlights the potential of Latin America as a key director on the global cryptography market.
El Salvador’s Bitcoin experience and Brazil’s regulatory progress
El Salvador has become a focal point of cryptographic innovation, being the first country to adopt bitcoin as a legal offer in 2021. However, the country has brought significant changes in 2025. The government revised its Bitcoin policy, removing compulsory Bitcoin acceptance for companies. Instead, Bitcoin payments are now voluntary, although the government continues to have significant Bitcoin reservations. This change occurred after public skepticism and the need to guarantee loans from the International Monetary Fund (IMF). Despite this, the country still brings in unrealized substantial profits from its Bitcoin investments.
In Brazil, regulatory developments have positioned the country as a leader in the regulation of digital assets in Latin America. Brazilian law 14,478/22, as of June 2023, obliges service providers with virtual active ingredients (VASP) to comply with regulations on licenses and anti-decrease lancers (AML). Brazil has also introduced a digital currency of the central bank (CBDC) called DREX to modernize payments. In 2025, Brazil promulgated tax reforms, imposing a tax of 17.5% on cryptographic capital gains, simplifying compliance but removing tax exemptions for small investors. These measures reflect Brazil’s efforts to balance innovation with regulatory surveillance.
Panama and Guatemala: emerging regulatory cadeworks
Panama is another country in Latin America which is advancing towards the integration of cryptography. A bill in March 2025 aims to recognize Bitcoin, Ethereum and Stablecoins as payment methods when the two parties agree. This bill includes provisions for service providers with virtual active ingredients in order to obtain licenses and comply with anti-flowage regulations and to know your customer (KYC). In addition, the bill promotes the use of blockchain in public services and the introduction of a digital identity system. Although still in the early stages, Panama Push to become a fintech center could attract cryptography companies in the region.
Guatemala also explores ways to regulate cryptocurrency. A bill presented in May 2025 would allow the voluntary use of digital currencies while retaining quetzal as an official currency. The bill offers tax exemptions for small personal cryptographic transactions and obliges VASPs to register with the superintendence of banks. Guatemala has experienced increasing use of crypto for sending back funds, in particular via platforms such as the Zigi application of Banco Industrial, which allows instant American funds at low cost using the Sukupay Stablecoin. Although the bill is still pending, it demonstrates the country’s intention to formalize the cryptography market.
The future of crypto in Latin America
While Latin America continues to adopt cryptocurrencies, countries focus on building executives that can support both innovation and consumer protection. With 63% growth in the adoption of cryptography in 2025, the region is on the right track to become a world center for digital assets. Countries like Brazil, Salvador and Panama open the way to other nations to follow up on, balancing the potential of blockchain technology with the need for regulations.
Regional cooperation also plays a role in the future of crypto. In 2025, Paraguay and Salvador signed an agreement to improve the surveillance of digital assets and share the expertise. This collaboration reflects the recognition that the effective regulation of cross -border cryptography will be crucial while digital transactions continue to grow in the region. While more and more countries are developing and implementing crypto policies, the role of Latin America in the global cryptography economy should develop more, shaping the future of digital currencies.
