In Latin American countries, stablecoins became a key tool for protecting savings, facilitating international transfers, and conducting business. In Argentina, Brazil, Colombia, and Mexico, stablecoins accounted for up to 50% of all crypto purchases.
Latin America remains one of the largest markets for stablecoins, driven by high inflation, currency instability, and restricted access to U.S. dollars. According to a Bitso report, stablecoins are widely used for value preservation, inflation hedging, and cross-border transactions in the region.
Argentina leads the region in stablecoin adoption, with 50% of all crypto purchases in 2024 made using stablecoins. This is due to hyperinflation exceeding 100% annually and limited access to dollars. Citizens actively use USDT and USDC as a digital alternative to dollar savings and for international payments.
Max Krupyshev, CEO of CoinsPaid, highlighted Argentina’s crypto adoption in the Purpose Driven FinTech podcast. He noted that in Buenos Aires alone, over 100 businesses, including cafés, restaurants, and stores, accept crypto payments. Besides, most locals use mobile FinTech apps and crypto wallets.
“People don’t like using the Argentine peso because it keeps losing value. Most prices are still pegged to the U.S. dollar, so cash dollars and crypto are widely used. Businesses, in turn, need a reliable ecosystem to process such payments, and CryptoProcessing by CoinsPaid is actively exploring opportunities in this sector,” said Max.
In Brazil, stablecoins accounted for 26% of crypto purchases, mainly due to the weakening of the national currency. The regulatory discussions on digital assets also played a crucial role in driving institutional and business adoption.
In Colombia, stablecoins were primarily used for asset dollarization amid the declining value of the peso. Their share in crypto portfolios increased by 17 percentage points compared to 2023. Banking restrictions on dollar holdings, such as a $5,000 minimum balance requirement, made USDT and USDC attractive alternatives to traditional foreign currency accounts.
Mexico, the biggest crypto market in the region with 4.4 million users, also saw growing interest in stablecoins. The share of USDT and USDC in crypto purchases increased by 6 percentage points, reaching 34%, driven by the rise in remittances, as stablecoins are used for cross-border payments and to avoid high banking fees.
In September 2024, businesses in Brazil and Mexico gained direct access to USDC via local national payment systems, thanks to Circle’s partnerships.
