Colombia

4.8% of Colombians own cryptocurrency

How many cryptocurrency owners are there in Colombia?

It is estimated that over 2.5 million people, 4.8% of Colombia’s total population, currently own cryptocurrency.(¹)

Colombia – Latin America’s next cryptocurrency hub?

In Chainalysis’ 2022 cryptocurrency adoption index, Colombia ranks 15th place in Peer-to-Peer exchange trading volume. Only Vietnam, which ranked 20th in the index, had a higher volume of P2P trade.(2) ‍

Colombia ranked fourth in the world for Peer-to-Peer Bitcoin trading volume, while its capital city, Bogotá, ranked seventh in the list of top Bitcoin cities, with 87 active cryptocurrency businesses.

How do Colombians view cryptocurrencies?

80% of Colombians expressed willingness to invest in cryptocurrencies, and more than half of those aged 25 to 40 have already invested or expressed interest in buying them. A third of Colombian cryptocurrency owners had already made transactions in cryptocurrencies.

The persistent depreciation of the Colombian Peso is also driving Colombians to view blockchain and cryptocurrencies as an alternative for wealth protection, as the Peso plunged to below 5,000 per dollar for the first time in 2022. (5)

Cryptocurrencies’ rising popularity in Colombia

  • Colombia to prevent tax evasion with national cryptocurrency: Report – August 2022. Luis Carlos Reyes, the head of the Colombian Tax and Customs National Authority, claimed that the government of newly inaugurated Colombian President Gustavo Petro will seek to create a cryptocurrency to prevent illicit financial activity, such as tax evasion. Colombia’s cryptocurrency plans are part of the country’s new monetary policy measures aimed at increasing transparency in financial transactions, the official said in an interview with the local magazine Semana.
  • Colombia Takes First Steps Toward Regulating Cryptocurrency Exchanges – June 2022
    Colombia is edging closer to a time when banks and cryptocurrency exchanges can collaborate, as the nation advanced its regulatory framework for the local cryptocurrency industry several months ago. The regulations include cybersecurity guidelines and tools to track cryptocurrency transactions, as well as a risk management framework for money laundering and terrorism financing. The strategy demonstrates Colombia’s commitment to a future in which people can purchase cryptocurrency using standard bank accounts.
  • Colombia clamps down on cryptocurrency tax evasion as adoption thrives – February 2022
    Colombia’s tax authority is tightening the screw on Bitcoin and cryptocurrency-related tax evasion against a backdrop of burgeoning cryptocurrency adoption.
  • Coindesk: Colombia’s First Commercial Bank to Pilot Cryptocurrency Services – March 2021
    A Colombian commercial bank established in 1870 is to trial cryptocurrency services through a sandbox project set up by the country’s financial regulator. Banco de Bogotá said Monday that the pilot program begins this month and will allow the bank to explore business models and the risks associated with handling cryptocurrency assets.
  • Bitcoin Magazine: Colombia will become BTC Haven – March 2021
    The Financial Superintendency of Colombia (FSC) recently authorized nine alliances between local, regulated banks and cryptocurrency exchanges. The initial partnerships reportedly include: Bancolombia with Gemini; Davivienda and Powwi with Binance; Banco de Bogotá with Bitso and Buda; Coltefinanciera with Obsidiam; Coink with Banexcoin; and Movii with Panda and Bitpoint.
  • Bitcoin.com: Colombia’s Financial Superintendent Approves Nine Cryptocurrency Platforms – February 2021
    In Colombia, the entity managed by the Ministry of Finance and Public Credit, the Financial Superintendence of Colombia (Superfinanciera), has authorized alliances between Colombian banks and cryptocurrency exchanges. So far, Colombia’s financial department has approved 9 partnerships between exchanges and national banks to make cryptocurrency operations more accessible to citizens.