Key facts: The most vulnerable people and sectors of the South American country are adopting bitcoin. Bitcoin stands out in the South American country as a tool for financial inclusion. The adoption of bitcoin (BTC) and other cryptocurrencies is gaining momentum in Peru. In one year, the country climbed six positions in the global digital asset index prepared by the blockchain analysis firm Chainalysis. Walking through the streets of Lima, the Peruvian capital, at first glance it is not entirely clear how much of a leap the South American country has made in the global cryptocurrency adoption report. That is because in its economy, the performance in controlling inflation is remarkable.
Unlike many of its neighbors in Latin America, Peru has maintained its inflation rate in single digits for more than 27 years, which gave it the regional leadership in price stability, positioning it as a benchmark in the region. However, although the country has achieved inflationary stability, Its economic outlook remains complicatedespecially considering that at the same time, it has recorded an increase in monetary poverty rates.
Peru has its inflation under control, but not its poverty rate. Source: Bloomberg. According to the National Institute of Statistics and Informatics (INEI), 29.0% of the Peruvian population is The number of people affected by poverty in the country increased by 1.5 percentage points compared to the previous year. This alarming increase is attributed to a series of negative shocks that have affected citizens' income, including the consequences of social conflicts, climatic phenomena such as El Niño and loss of business confidence. The most vulnerable sectors, especially fishing and agriculture, were severely affected by climatic problems that reduced the income of fishermen, farmers and merchants during the year. This scenario of economic difficulties has generated an increase in poverty that affects a considerable part of the population.
Poverty, a catalyst for bitcoin adoption
In its global cryptocurrency adoption report, Chainalysis reveals how countries with the highest poverty rate adopt bitcoin more. This is not only because their populations are looking for new investment opportunities, but also as a response to urgent economic needs. Bitcoin's ability to offer accessible and efficient financial services in limited contexts strengthens its adoption in these nations, thus promoting greater financial inclusion. By analyzing the value transacted by individual users in centralized services, the Chainalysis study reveals that countries with a high poverty rate show greater activity in cryptocurrency transactions on a smaller scale, indicating that People are using bitcoin and other cryptoassets for everyday needs.
This trend is significant, as the use of cryptoassets for small transactions allows individuals to access financial services, especially in communities that have been excluded from the traditional financial system. This is precisely what is happening in Peru, where bitcoin stands out as the bank of remote villages. This is demonstrated by the town of Huayllapata, where an association of Quechua women are talking about bitcoin, learning about Satoshi Nakamoto’s invention and accepting payments in BTC in exchange for their crafts.
Peru ranks 42nd in Chainalysis' global adoption ranking. Source: Chainalysis.
Bitcoin Beach and Bitcoineta Inka, a reflection of enthusiasm for BTC
Several towns in Peru demonstrate that bitcoin can be a crucial tool for financial inclusion and also for improving their economic conditions. It is not only because the digital currency is a reserve asset, but also because it allows them to have access to a global financial system and an inclusive asset with which they can move their economies. It is possible because Bitcoin is reaching many rural and remote areas where there are no physical bank branches or ATMs. Digital currency is also gaining the trust that the banking system lost due to negative experiences in many cases.
«Motiv is promoting education in disadvantaged places. In the community of Banderas in Ancón, Lima, we provide education to children and adolescents through the Motiv After School program, where Bitcoin is our tool to transform futures.»
Motiv Peru Team.
Additionally, with bitcoin in their hands, Peruvians are receiving the financial education that has always been absent in their communities. This is something that is happening in many remote villages in Peru thanks to the non-governmental organization (NGO) Motiv, whose team has been working to form citadels or circular economies of bitcoin. There, the adoption of bitcoin is unstoppable and it is now one of the main attractions of the historic seaside town of Huanchaco. A Bitcoin Beach has been developedfollowing in the footsteps of the citadel of El Salvador, where an entire community of surfers inspired the adoption of bitcoin as legal tender in the Central American country. So, in the Trujillo province of Peru, on Huanchaco Beach, surf instructor Tito Lescano teaches the practice of this sport to the children of the region. Bitcoin inspires and fills them with enthusiasm, because it is the only currency they use to pay for their activities, thus driving a circular BTC economy.
A similar story is unfolding about 600 kilometers away, specifically on the beach of Máncora in the Piura region, on the northwest coast of the country. On this beach with big waves, another surf school accepts payments in BTC while encouraging the practice of this sport. And much further away, in the Andes area, now Motiv brings bitcoin education to the most remote villages with the Bitcoineta Inka. It is a vehicle with enough capacity and traction to climb the longest mountain ranges in the world, where the descendants of the Inca civilization live, which developed the largest empire in America, which existed between the 15th and 16th centuries.
The Inka bitcoin farm is bringing education to remote villages in the Peruvian Andes. Source: X/MotivPerú. In short, the adoption of bitcoin and other cryptocurrencies in Peru is seen as an emblematic phenomenon that reflects both the economic challenges and innovation opportunities facing the population. As the country advances in its global digital asset index, it is becoming clear that the search for effective solutions to combat poverty and promote financial inclusion is driving interest in bitcoin.