Donald Trump’s election victory has been confirmed for a week now, but the news of it still rings new in the ears of the crypto community and many other crypto users. The reason for this is simple: Trump, during his campaign, promised to introduce many crypto-friendly policies that would help the industry thrive better. Analysts now predict that the benefits of a crypto-supportive Trump administration could extend beyond the US market, potentially influencing neighboring countries.
Many regions in Latin America have already been using stablecoins and Bitcoin to serve as inflation shields and remittance channels. However, regional exchanges in those areas are now reporting a massive spike in crypto activity following Donald J. Trump's election to office.
Experts say that Trump’s pro-crypto attitude resonates well with many inflation-hit economies in those areas. According to data from Chainalysis, Latin America is responsible for processing over $85 billion in crypto transactions per year. Experts believe that this will be even boosted by Trump’s promises, such as his pledge to establish a Bitcoin reserve for the nation and ease regulatory burdens.
Many important crypto figures in the Latin American region also see Trump’s win as a potential boost for increased crypto adoption, especially among institutions and cross-border flows.
Sebastian Serrano, CEO of the Argentina-based exchange Ripio, said that Trump’s reelection could “further boost the crypto market” and that his crypto-friendly tenure could create “room for further appreciation." He believes this could be “a decisive period for Bitcoin and the cryptocurrency market as a whole.”
#bitcoin empieza a esperar una victoria de Trump pic.twitter.com/4GAfVT1wOT
— Sebastián Serrano (@sserrano44) November 6, 2024
This is especially good news for many countries grappling with currency instability. Argentina, for example, has seen poverty rates spike to over 53% under the current Mileu administration. However, it has not stopped Bitcoin trading in the country from surging 160% in October alone.
Venezuela, which is also not in an ideal economic situation, has seen over 92% of crypto activity flow through centralized exchanges as its citizens prefer alternatives to the native currency.
In light of these, many regional crypto firms are already bracing themselves for the potential growth that Trump is supposed to usher in. Lemon Cash, a crypto exchange platform recently expanding to Peru, has reported processing over $20 million in local currency transactions in just its first three months.
Marcelo Cavazzoli, CEO of Lemon Cash, has said that they could also benefit from “clear US regulations” in accelerating adoption across other Latin American markets.
But not all regional players are as excited at the moment. Some, such as Matias Reyes from TruBit Exchange, believe that while Trump’s “regulatory shift helps... we still need to solve fundamental infrastructure challenges." He mentioned some of them, including cross-border settlement and banking relationships, which he believes are the true needs of the crypto industry. Either way, no one is certainly disputing how big of a help this Trump re-election has been so far.
HODL Team
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