"Latin America, dollar stablecoin services spreading"

Son Min

Summary

It reported that stablecoins and blockchain-based financial services are rapidly spreading in the Latin American region.
It said that demand for the dollar-linked stablecoins USDC and USDT is surging in countries with severe inflation, such as Argentina.
According to local exchange Bitso in 2024, the share of stablecoin trading reached 39% of total purchases, indicating increased use as payment and savings tools.

Stablecoins and blockchain-based financial services are spreading in the Latin American region. Analysts say that amid inflation and a lack of traditional financial infrastructure, crypto assets are taking root as new means of payment and savings.

On the 23rd (local time), Cointelegraph reported that Patricio Mesri, co-CEO of Bybit LATAM, said, "In Latin America, stablecoins are becoming established as everyday means of payment," and "adoption rates are rapidly increasing, especially in Argentina, Venezuela, Bolivia, and Mexico." He added, "Crypto assets are changing people's lives in reality, beyond mere speculation."

In particular, cases using stablecoin payments to reduce remittance fees, or using crypto-backed loans for large transactions such as car or home purchases, are also increasing. Especially in Argentina, where the annual inflation rate has exceeded 100%, demand for the dollar-linked stablecoins USDC and USDT has surged.

According to local exchange Bitso, as of 2024 stablecoin trades accounted for 39% of total purchases. Chainalysis data also showed that in Latin America the share of payments and savings among crypto asset use cases is continuously expanding.