Amid persistent high inflation and currency devaluation in Latin America, stablecoins are becoming a financial shield for local residents against economic turbulence. The latest “Latin America Crypto Landscape Report” released by cryptocurrency exchange Bitso reveals a significant surge in stablecoin adoption in the region in 2024, with Circle’s USDC and Tether’s USDt dominating the market with a combined purchase share of 39%. The report emphasizes that these two dollar-pegged assets have been recognized by users as “digital stores of value,” with their purchase volume increasing by 9% compared to 2023, reflecting the growing strategic importance of stablecoins in Latin America’s financial system.
USDC’s leading position is particularly notable, accounting for 24% of purchases on Bitso’s platform and becoming the preferred stablecoin for Latin American users. Meanwhile, USDt follows closely with a 15% share, together forming the core trading pairs in the local cryptocurrency market. This trend contrasts sharply with the structural decline in Bitcoin purchases—despite Bitcoin hitting a historic high of $100,000 in December 2024, its share on Bitso plummeted from 38% in 2023 to 22%. Analysts point out that users are increasingly turning to stablecoins to hedge against fiat currency volatility rather than chasing Bitcoin’s short-term price fluctuations, signaling a shift from speculative trading to long-term asset preservation strategies in the region.
A deeper dive into regional markets reveals Argentina as a global benchmark for stablecoin adoption. With the country’s inflation rate exceeding 100% in 2024, USDt captured 50% of cryptocurrency purchases, serving as an economic safe haven for Argentine users, while USDC supported the second tier of demand with a 22% share. In contrast, Bitcoin accounted for only 8% of purchases in Argentina, the lowest among major Latin American economies. This regional divergence takes a different shape in Brazil and Mexico—despite growing stablecoin usage, Bitcoin remains the most popular cryptocurrency with purchase shares of 22% and 25%, respectively, highlighting the diverse crypto preferences shaped by economic disparities across Latin America.
Industry observers believe that the synergistic growth of USDC and USDt underscores the dual role of stablecoins in Latin America: serving as both a savings tool against inflation and a liquidity medium for cross-border payments and daily transactions. As platforms like Bitso continue to optimize their stablecoin ecosystems, these assets are expected to further penetrate areas underserved by traditional finance, providing a more stable wealth anchor for over 250 million people facing currency devaluation risks.
