Crypto-currencies gain popularity as an investment option in Chile in 2022

Crypto-currencies have increased in popularity in Chile, according to a survey by global consulting firm Bain & Company. The’survey found that crypto is ranked as the third most popular investment asset among Chileans, just behind investment funds, which were the most popular investment option, and real estate, which ranked second.

Crypto-currencies’ popularity rises in Chile in 2022

Latam countries that have been hit by high devaluation and inflation rates are starting to turn to crypto as an investment option. In Chile, which is among the five countries with the worst inflation in the area, crypto has risen to be one of the most popular investment choices among all the options available in the market.

The findings come from a survey by Bain & Company, a global consulting firm based in Boston, which asked about the most attractive investment options in the country in 2022. 23% of respondents answered that crypto-currencies were the best choice for their investments in 2022, ranking third among all options.

Investment funds took the top spot in the survey, with 36% of respondents choosing this option as their top investment option. 24% of respondents said they had invested in real estate.

Why crypto-currencies are becoming more popular

The reasons for these results are related to the way investors perceive crypto and its possible returns, although 2022 was not a good year for the sector, having faced the disappearance of Terra and the bankruptcy of FTX, two particularly impactful events. About this perception, Marcial Rapela, partner at Bain Chile, said:

This figure coincides with the trend we have seen recently, where digital currencies have become increasingly popular due to their high levels of returns on certain occasions.

However, most still choose traditional investment options due to their limited volatility and associated risk. Yet, crypto-currencies have been considerably more popular than other established options such as stocks and bonds, which received 21% and 19% preference, respectively.

Chile has taken steps to give crypto-currency investors regulatory clarity. The country approved a financial technology law in October, which analysts say will attract more crypto-currency investments in the future. In addition, after years of struggle with private banks, crypto-currency exchanges can now open bank accounts in the country. Buda, a national exchange, was the first to do so, opening the doors for others.