Crypto Adoption in the Caribbean: A Focus on the Dominican Republic

Published on September 16, 2024
By: Pofan Palnudoti
Featured image for “Crypto Adoption in the Caribbean: A Focus on the Dominican Republic”

In recent months, we’ve focused on the rise of crypto adoption in several South American countries. But this trend isn’t limited to that region. Today, we’re shifting our focus to the Caribbean, a group of islands connecting North and South America. Specifically, we’re looking at the Dominican Republic, where crypto acceptance has steadily increased, though it’s not as widespread as in places like El Salvador, Venezuela, Argentina, and Brazil. According to BTCMap, 41 businesses on the island now accept cryptocurrencies as payment. These include tech stores, cafes, and textile factories, with most located in the capital, Santo Domingo. There are also some businesses in popular tourist spots like Samaná, Punta Cana, Santiago de los Caballeros, Puerto Plata, and Cabarete.

This isn’t the first time the Dominican Republic has been in the spotlight for crypto. In July 2023, Minsait Payments published a study that surveyed over 7,200 people across eight Latin American countries. The report found that nearly 19% of banked individuals in the DR have invested in cryptocurrencies.

According to CoinATMRadar, the Dominican Republic currently has 17 Bitcoin ATMs, with 8 located in Santo Domingo. In comparison, Puerto Rico has 144 Bitcoin ATMs, while Saint Martin has just 1. Additionally, there are 7 crypto-friendly businesses in Puerto Rico and six in Saint Martin, as well as 79 such businesses on the island of Curacao.

Several factors are driving the crypto adoption in the DR, including easier international transactions and the search for financial alternatives. It’s important to note that this growth happens in a country not facing severe inflation like Venezuela and Argentina. Recent data from early August shows that inflation in the Dominican Republic was 3.90% over the past year—a relatively low figure that many see as a sign of economic stability.

It’s also worth highlighting Bitcoin Dominicana, an organization that has played a key role in promoting crypto adoption in the country. They focus on educating individuals and businesses about Bitcoin and the growing impact of decentralization in the global digital economy. You can find them on social media here.

“Bitcoin isn’t controlled by any government or financial institution, which makes it resistant to manipulation and censorship. Transactions are recorded on the blockchain, providing transparency, and the network is safeguarded by strong cryptography, making it secure and hard to defraud.

The debate between fiat money and Bitcoin is far from over. It’s uncertain whether both systems will coexist or if one will eventually replace the other. Only time will reveal which system will better meet the needs of our ever-changing world”.

–Excerpt from this article, featured on the Bitcoin Dominicana blog.

In 2023, a Mastercard study reported that crypto adoption in the DR surged by 52% in 2022. The report estimated that just over 221,000 people in the country own cryptocurrencies, which represents about 2.08% of the population. While buying crypto on the island is relatively straightforward, the regulatory landscape remains unclear. Currently, there are no specific regulations, and the Central Bank has mainly focused on issuing warnings about risks such as volatility and potential illegal activities.

“Previously, the Dominican Republic was known for its baseball players and musicians. Now, it’s also gaining recognition for its traders and cryptocurrency investors, although the government hasn’t acknowledged this yet. People who once viewed cryptocurrencies as something shady are now seeing that they’re both viable and functional”.

–Jairo González, CEO of Harvest Trading Cap, in an interview with Bloomberg Línea.

Our series on crypto adoption across various countries:

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