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In various international locations across Latin America, stablecoins have emerged as a crucial tool for protecting savings, enabling international transfers, and conducting business activities. In Argentina, Brazil, Colombia, and Mexico, stablecoins represented up to 50% of all cryptocurrency transactions.
Latin America continues to be one of the largest markets for stablecoins, driven by high inflation, currency volatility, and limited access to U.S. dollars. A report from Bitso indicates that stablecoins are extensively utilized for value retention, inflation protection, and cross-border transactions in the region.
Argentina is at the forefront of stablecoin adoption, with 50% of all cryptocurrency purchases in 2024 conducted using stablecoins. This trend is attributed to hyperinflation surpassing 100% annually and restricted access to dollars. Residents frequently utilize USDT and USDC as a digital alternative for dollar savings and international payments.
Max Krupyshev, CEO of CoinsPaid, emphasized Argentina’s cryptocurrency adoption during the Objective Driven FinTech podcast. He pointed out that in Buenos Aires alone, over 100 businesses, including cafés, restaurants, and retail stores, accept cryptocurrency payments. Furthermore, a majority of locals utilize mobile FinTech applications and cryptocurrency wallets.
“People prefer not to use the Argentine peso due to its continuous depreciation. Most prices are still linked to the U.S. dollar, so cash dollars and crypto are widely utilized. Businesses, in turn, require a reliable ecosystem to process such payments, and CryptoProcessing by CoinsPaid is actively seeking opportunities in this sector,” stated Max.
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In Brazil, stablecoins constituted 26% of cryptocurrency purchases, primarily due to the depreciation of the national currency. Ongoing regulatory discussions regarding digital assets also significantly contributed to the growth of institutional and business adoption.
In Colombia, stablecoins were mainly employed for asset dollarization in response to the declining value of the peso. Their proportion in cryptocurrency portfolios rose by 17 percentage points compared to 2023. Banking restrictions on dollar holdings, such as a $5,000 minimum balance requirement, made USDT and USDC appealing alternatives to traditional foreign currency accounts.
Mexico, the largest cryptocurrency market in the region with 4.4 million users, also experienced a growing interest in stablecoins. The share of USDT and USDC in cryptocurrency purchases increased by 6 percentage points, reaching 34%, driven by the rise in remittances, as stablecoins are utilized for cross-border payments and to circumvent high banking fees.
In September 2024, businesses in Brazil and Mexico gained direct access to USDC through local national payment systems, thanks to partnerships established by Circle.
Сообщение Stablecoins Utilized in Latin America as Retailer of Worth появились сначала на CoinsPaid Media.
