Blockchain - Industry - South America Market, Share and Trends 2023-2028

Summary of Blockchain

The blockchain industry in South America is gaining traction as governments seek to drive innovation and provide better public services. Countries like Brazil, Argentina and Chile are emerging as regional leaders. The blockchain market in the South American region is expected to grow from $ 4.40 billion in 2023 to $ 31.45 billion by 2029 at a CAGR of 37.36 % from 2023 to 2029.

The financial sector sees the most blockchain adoption currently, with central banks piloting CBDCs, banks testing settlements and remittances on blockchain rails. Supply chain tracking and transparency in agriculture exports also show promise. However regulatory uncertainty persists despite a generally positive outlook.

Government support has been a key driver. Countries like Brazil, Colombia and Argentina have implemented favorable regulations and policies to encourage blockchain innovation. Central banks across the region are also piloting central bank digital currencies (CBDCs) built on blockchain technology.

Decentralized finance (DeFi) and crypto adoption have skyrocketed among citizens looking for alternative financial services, with over 80 million South Americans now owning cryptocurrencies. Leading DeFi platforms have seen parabolic growth.

Key challenges remain around regulations, with most countries still finalizing clear frameworks. Concerns also linger around sustainability, as mining operations continue expanding to take advantage of cheap energy sources.

Recent Trends and Insights

South American blockchain startups raised over $350 million in venture capital funding in 2022. Major blockchain hubs have formed in São Paulo, Buenos Aires, Santiago and Medellin, attracting substantial tech talent.

Governments across South America have been actively piloting blockchain solutions to improve public services. Brazil has led adoption in the public sector, rolling out over 90 blockchain projects focused on identity management, voting, taxes and more. Colombia and Chile are also pioneers with numerous initiatives in areas like education, healthcare and land rights management underway.

Other significant trends in South America is the increasing use of blockchain in the financial sector. Several banks and financial institutions in the region are exploring blockchain-based solutions for cross-border payments, trade finance and remittances. For instance— Banco Santander Brasil recently launched a blockchain-based platform for trade finance, while the Argentine bank Banco Masventas introduced a blockchain-based remittance service.

Decentralized finance (DeFi) has exploded as citizens seek alternative financial services outside traditional institutions. Brazil accounts for over 80% of DeFi adoption in the region—with over $6.5 billion currently locked in DeFi. However other countries are catching up – with Argentina, Colombia and Mexico seeing rapid growth. Stablecoins like— DAI and USDC have also gained traction for payments.

Product Insights

Product Insights

From DeFi platforms to crypto remittance services, South American developers have pioneered innovative blockchain solutions tailored for local users.  Paxos is a USD-backed stablecoin native to South America, providing a digital dollar alternative to citizens in countries like Argentina plagued with currency volatility. Since launching in 2019— it has processed over $5 billion in transactions and gained wide merchant acceptance across LatAm.

Ripio— is Argentina’s largest crypto exchange and wallet provider— with over 2 million users across Brazil, Mexico and Argentina. It offers a full-suite crypto trading platform integrated with a consumer wallet, merchant services and peer-to-peer functionalities—that are custom and tailored for South Americans.

Mexico-based Bitso— is Latin America’s highest-valued crypto exchange at over $2.2 billion. With operations across Argentina, Brazil and Mexico, it serves over 4 million users and has its own BITSO branded stablecoin. Bitso is known to offer a diverse fiat-to-crypto trading pairs and cross-border payment options.

Foxbit — is another prominent Brazilian crypto exchange— powering over 1 million active traders across the country. It offers accessibility for everyday citizens with multiple local payment options to purchase 50+ coins. Foxbit also recently launched decentralized exchange and margin trading capabilities.

Prometeo— is an open-source blockchain protocol— spearheaded by Banco Inter in partnership with IBM. It enables financial entities to access identity verification data in a secure, confidential manner by leveraging decentralized identifiers. Multiple Latin American banks have joined the initiative.

Key Companies

Some major players within this vast domain of industry are

• IBM
• Banko Inter
• DiMuto
• Pagoda
• Prometeo
• Foxbit
• TransFi
• TRM Labs
• Mean Finance
• Exodus

Regional Analysis

As South America’s largest economy— Brazil dominates regional blockchain adoption. With a progressive regulatory environment, substantial tech talent and the continent’s highest crypto ownership rates— this has led to Brazil’s blockchain sector to thrive.

São Paulo has emerged as South America’s primary blockchain hub— with 58% of all regional blockchain companies based there. Major crypto exchanges like Mercado Bitcoin and Foxbit fuel mainstream adoption from Brazil. The blockchain space has also gained strong government support under President Bolsonaro.

Argentina has cultivated a thriving crypto and blockchain ecosystem driven by rapid inflation and currency controls imposed by the government over the past decade. With citizens seeking financial alternatives, Argentina boasts the highest crypto adoption per capita after Vietnam globally.

Buenos Aires has developed into a major regional blockchain hub with an abundance of startups. Ripio and Lemon Cash are Argentinian success stories, while exchanges like SatoshiTango and BuenBit continue gaining market share. The country also flaunts talented developers and a highly educated workforce.

Chile has proactively nurtured blockchain innovation. Government initiatives like the Blockchain Institute have invested millions developing local talent and R&D capabilities. This has birthed startups like CryptoMKT, Chile’s leading crypto exchange.

Leading crypto exchange Bitpoint operates in Colombia along with prominent platforms like Valiu and Buda.com to provide easy investor access. Colombia has also implemented friendly legislation with comprehensive regulation around crypto transactions. The country looks positioned to unlock further blockchain adoption down the line.

Market Segmentation

By Type:

• Public blockchain
• Private blockchain
• Consortium or hybrid blockchain

By End User:

• BFSI
• Retail & e-Commerce
• Healthcare & Life Sciences
• Transportation & Logistics
• Government
• Media & Entertainment
• Travel & Hospitality
• Others

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Countries:

• Brazil
• Argentina
• Columbia

Our Methodology

We have offered a well-founded review of South American regional Blockchain Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.