Stablecoins Spread Across Latin America, Boosting Dollar Use but Also Easing Shifts Into Bitcoin and Gold

The rapid spread of dollar-backed stablecoins across Latin America is reinforcing the US dollar’s influence in the region, Bloomberg reported on September 4. But the same infrastructure could also become a conduit for moving money into Bitcoin and gold.

Demand for dollar-pegged stablecoins is rising across Latin America as users seek shelter from volatility in local currencies, according to Bloomberg. Chainalysis estimates cryptocurrency transactions in the region totaled about $1.5 trillion from July 2022 through June 2025.

At crypto exchange Bitso, dollar-linked stablecoins accounted for 40% of all crypto purchases in 2025, more than twice Bitcoin’s share. From July 2024 through June 2025, stablecoins also made up more than half of crypto purchases made with Argentine pesos, Colombian pesos and Brazilian reais.

"Consumers look for the safest asset," said Imran Ahmed, chief operating officer at Bitso. If people lose trust not only in their local currency but also in the dollar, moving into Bitcoin would be a natural next step.

Stablecoins are also increasingly being viewed as financial infrastructure rather than simply a payment tool. Manuel Belandroit, founder of Belo, said they should be seen as an alternative to traditional banking infrastructure. Stablecoins have evolved into a digital form of the dollar, while Bitcoin has become a digital alternative to gold.

The challenge is that once users hold stablecoins, switching into other assets becomes much easier. Holding stablecoins in a crypto wallet or on an exchange makes it far easier to convert them into Bitcoin or other digital assets, said Neha Narula, director of the Digital Currency Initiative at the MIT Media Lab.

As a result, the spread of stablecoins may increase dollar use in the short term. Over the longer run, however, it could also serve as a channel for funds to move into Bitcoin and gold through a debasement trade, an investment strategy designed to hedge against a decline in the dollar’s value.