Stablecoin Adoption Surges in Latin America as Users Turn to USDC and USDT for Stability
Stablecoins, particularly Circle’s USDC and Tether’s USDT, are increasingly popular in Latin America as users seek protection from economic instability.
According to Bitso’s latest Latin America Crypto Landscape report , stablecoin purchases on the platform surged, comprising 39% of all cryptocurrency transactions in 2024, up from 30% the previous year. This trend highlights the region’s ongoing struggles with inflation and currency devaluation, prompting a growing demand for digital assets that can preserve value.
While stablecoin purchases surged, Bitcoin trading on Bitso saw a significant downturn. The report notes that Bitcoin’s share of total purchases dropped from 38% in the latter half of 2023 to just 22% in 2024. This decline suggests a shift in investor strategy, with many opting to hodl Bitcoin in anticipation of long-term gains, especially as the asset reached historic highs, surpassing $100,000 in December 2024.
Argentina emerged as the dominant market for USDT among Latin American countries, with the stablecoin accounting for 50% of all crypto purchases on Bitso. USDC followed at 22%, reinforcing the country’s reliance on stablecoins amid inflation rates exceeding 100%. Meanwhile, Bitcoin purchases in Argentina represented only 8% of total acquisitions—the lowest among all analyzed nations.
In contrast, Bitcoin remained the top choice for Brazilian and Mexican Bitso users. BTC purchases accounted for 25% of total crypto acquisitions in Mexico and 22% in Brazil, demonstrating continued investor confidence in the leading cryptocurrency despite its reduced trading activity in other parts of the region.
The rise in cryptocurrency adoption in Latin America followed a significant regulatory milestone in Argentina in 2023. The country’s securities regulator approved the launch of a Bitcoin-based futures index on the Matba Rofex exchange, marking the region’s first regulated Bitcoin futures product. Trading for the Bitcoin futures contract commenced in May, opening new avenues for investors seeking exposure to cryptocurrency within a regulated framework.
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