As inflation bites, many in Latin America are increasingly turning to stablecoins as an alternative to traditional banking systems. Faced with economic instability, including high inflation and currency devaluation, stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar, are emerging as essential financial tools. These digital assets offer a means of preserving value, facilitating remittances, and promoting financial inclusion in a region where traditional financial services often fall short.
Several factors contribute to the growing adoption of stablecoins in Latin America. Economic instability, characterized by soaring inflation rates in countries like Argentina and Venezuela, erodes the purchasing power of local currencies. Stablecoins provide a refuge from this volatility, acting as "digital dollars" to protect savings. Remittances also play a significant role, with Latin America being a major recipient, exceeding $142 billion in 2022. Stablecoins offer a faster and more affordable alternative to traditional remittance methods, reducing costs by as much as 50% in some corridors. Financial inclusion is another key driver, as a large percentage of the Latin American population lacks access to traditional bank accounts. With increasing smartphone and internet penetration, stablecoins enable many to participate in the global financial system without needing a bank.
The rise of stablecoins reflects a broader trend of cryptocurrency adoption in Latin America. Between July 2022 and June 2025, the region recorded nearly $1.5 trillion in cryptocurrency transaction volume. While the trajectory has been volatile, the overall trend is unmistakably upward. This growth is fueled by both institutional interest and consumer demand for stablecoins. In several Latin American countries, stablecoin purchases constitute over half of all exchange purchases.
Stablecoins address a range of financial challenges in Latin America. In contexts of hyperinflation, individuals and businesses use them to protect their purchasing power. Cross-border payments and remittances become more efficient and cost-effective. Businesses are also adopting stablecoins for domestic and international transactions.
Among the key players in the stablecoin ecosystem, Tether (USDT) is the most widely used, especially in countries with high inflation like Argentina. USD Coin (USDC) is also gaining traction, known for its transparency and regulatory compliance.
In Argentina, where inflation soared to 143% in 2023, stablecoin usage surged as citizens sought to protect their savings from the devaluation of the Argentine peso. Following President Javier Milei's economic measures that devalued the ARS by 50%, stablecoin trading volumes skyrocketed. Stablecoins accounted for 39% of total purchases on local crypto exchange Bitso in 2024, becoming the most sought-after digital assets.
Brazil has also seen significant growth in crypto activity, driven by renewed institutional interest. Stablecoin usage has surged, with over 90% of Brazilian crypto flows now stablecoin-related, highlighting their crucial role in payments and cross-border transfers.
The dominance of stablecoins in Latin America reflects persistent inflation, currency volatility, and capital controls. They provide a hedge and a practical payments tool where local currencies often fail to provide stability. As Patricio Mesri, co-CEO of cryptocurrency exchange Bybit's Latin American division, noted, people are using stablecoins for daily life, and crypto is changing lives in the region. Some interesting use cases include stablecoin payments to circumvent high remittance fees and crypto-based loans for major purchases.
Looking ahead, Latin America's crypto ecosystem is poised for continued growth, driven by institutional adoption and persistent retail demand for stablecoins. However, it is important to note that the adoption of stablecoins could rapidly change due to regulatory developments, market dynamics, and economic conditions.
