Peru has been one of the fastest-growing economies in Latin America. But political turmoil and rising inflation over the past year has unsettled Peruvians, leading many to turn to crypto as a haven. Chile-based crypto exchange with operations in Peru since 2017, registered an “exponential growth” in crypto adoption in 2021. The platform’s annual trading volume went from $19,500 in 2020 to $74 million in 2021, reaching a trading volume of $22 million so far in 2022. Buda.com, with more than 500,00 users in the region, is one of several crypto exchanges that landed in Peru in the last two years. Argentina’s Buenbit and Let’s Bit opened operations in the South American country at the end of 2021, while Spain’s Bit2Me entered it by acquiring the local exchange Fluyez in July of this year.
Buenbit was the first exchange to add a Peruvian sol-pegged stablecoin called nuPen, developed in partnership with Num Finance, a crypto firm that also created nuARS, a stablecoin pegged to the Argentine peso that operates on Binance’s blockchain. With the Peruvian sol maintaining value against the U.S. dollar, Peru’s economy grew steadily from 1999 to 2019, with peaks of up to 9.1%, as in 2008, making the country one of the most buoyant economies in Latin America. Peru reported 1% monthly inflation in July, adding to a 9.28% year-to-year rise. That’s the biggest hike in prices in 25 years and far above Peru’s central bank annual goal of inflation between 1% and 3%. At the same time, the lack of regulation in Peru makes it more difficult for exchanges to open bank accounts, given that banks are not “crypto-friendly”.