Latin America Embraces Stablecoins for Daily Payments Amid Economic Volatility

Executive Summary

Latin American users are increasingly utilizing stablecoins and cryptocurrencies for daily payments and financial access, driven by persistent high inflation and structural inefficiencies within traditional banking systems. This trend signifies a substantial shift in the region's crypto adoption, moving beyond speculative investment towards essential practical utility. The region recorded nearly $1.5 trillion in cryptocurrency transaction volume between July 2022 and June 2025. Stablecoins currently dominate this landscape, representing over 90% of Brazilian crypto flows and more than 50% of exchange purchases in countries such as Colombia, Argentina, and Brazil.

The Event in Detail

Latin America emerged as the seventh-largest crypto economy globally in 2023, with a robust and dynamic market. The primary catalysts for the widespread adoption of stablecoins and other digital assets are deep-seated economic challenges, including rampant inflation and significant currency volatility. Argentina, for example, has experienced a cumulative inflation rate of 276% over the past 12 months, prompting its citizens to seek U.S. dollar-linked stability. In this environment, stablecoins function as a parallel financial system, providing a crucial hedge against depreciating local currencies and serving as a practical tool for savings, remittances, and commerce.

Data from leading exchanges underscores this shift: stablecoin transactions accounted for 39% of total purchases on Bitso in 2024. In the first half of 2025, Mexico saw its share of stablecoin transaction volumes increase from 45% to 47%. Beyond traditional remittances, stablecoins are increasingly integrated into broader financial operations, with foreign exchange (FX), treasury management, and arbitration collectively representing 45% of Bitso Business’ stablecoin volumes in the first half of 2025. Cross-border payments stand out as a primary application, cited by 71% of respondents in the region. Furthermore, local stablecoins, such as those pegged to the Brazilian Real (BRL) and Mexican Peso (MXN), have demonstrated remarkable growth, with BRL-pegged tokens increasing 660% year-on-year and MXN-pegged tokens surging 1,100 times over the same period, signaling their rising importance as viable domestic payment solutions. The burgeoning infrastructure, including dedicated payment applications and providers, is evolving into a network of digital banks facilitating seamless stablecoin management and real-world spending.

Market Implications

This pronounced shift in Latin America highlights the expanding utility of stablecoins and cryptocurrencies in regions grappling with economic instability and underdeveloped traditional financial infrastructure. This trend is expected to drive further innovation and adoption in global payments and financial services, particularly within emerging markets. Over the long term, it strengthens the narrative of crypto as a credible alternative to conventional finance, potentially influencing regulatory frameworks and accelerating the tokenization of real-world assets (RWA). According to Bitfinex Securities, RWA tokenization holds the potential to reduce issuance costs for capital raises by up to 4% and cut listing times by as much as 90 days, thereby enhancing liquidity and attracting new investment into Latin American capital markets.

Institutional confidence in the region is notably high: 86% of Latin American firms report having established partnerships to support stablecoin integration, and 71% indicate their infrastructure is already prepared for such shifts. Regulatory uncertainty is perceived as a significantly lower barrier in Latin America, cited by only 29% of institutions compared to a 41% global average, further cementing the region's proactive stance on digital asset integration.

Expert Commentary

Patricio Mesri, co-CEO of Bybit's Latin American division, observed, "LATAM adoption is quite high. People are using stablecoins for daily life, so it's a whole different market." This perspective emphasizes the practical, non-speculative nature of crypto use in the region. Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities, highlighted the transformative potential of tokenization, stating it "actively removes these barriers" to capital access and unlocks capital more efficiently than traditional financial products. Chainalysis identified Latin America as a prominent crypto economy, underscoring its global significance. A Forbes analysis also noted Argentina's leading crypto adoption rate in the Western Hemisphere, further substantiated by Lemon Cash's Head of Compliance, Alfonso Martel Seward, who reported that his firm alone catered to approximately two million of Argentina's five million crypto users.

Broader Context

While cryptocurrency transaction volumes in Latin America experienced a slight moderation in the first half of 2025, reaching $47.9 billion, the region maintains a significantly higher baseline compared to 2022 or 2023, indicating sustained momentum. Brazil notably leads the region with a period-over-period growth rate of 109.9%. The regulatory landscape across Latin America is also evolving to accommodate this growth. Brazil enacted a national crypto law in 2023 and aims for phase-one rules by late 2025, including a dedicated stablecoin rulebook. Mexico has tightened anti-money laundering checks under its 2018 Fintech Law. In Argentina, Law No. 27,739 was enacted in March 2024 to bring Virtual Asset Service Providers (VASPs) under securities regulation, and the country launched a tokenization sandbox in April 2025 to pilot on-chain securities. While Chile and Colombia have issued regulatory guidance, comprehensive legal frameworks are still developing. The regional trajectory indicates that cryptocurrencies, particularly stablecoins, have matured beyond early adoption phases to become an indispensable component of Latin America's financial infrastructure, addressing urgent, day-to-day economic needs for both banked and unbanked populations.