Stablecoins Become ‘New Banking System’ for Latin Americans Amid Traditional Financial Crisis
With banking systems in many Latin American countries still slow to adapt to the digital age, people in the region are increasingly turning to stablecoins – digital assets pegged to the US dollar – as a reliable alternative for payments, savings and cross-border transfers.
Stablecoins Fill the Gap in a Dysfunctional Financial System
In countries like Argentina, Venezuela, Bolivia and Mexico, the instability of fiat currencies and rising inflation have caused many people to lose faith in traditional banks.
According to Patricio Mesri, Co-Head of Latin America at Bybit, the use of stablecoins has now become part of everyday financial life – from paying for services, paying salaries to personal savings.
USDT and USDC stand out for their low volatility, easy conversion, and instant transaction capabilities, helping people avoid the risk of devaluation of their local currency. In particular, in Argentina – where inflation exceeds 100%/year, stablecoins have become “unofficial money” for millions of people.
Low fees, fast speed – the cross-border remittance revolution
The traditional banking system in this region often imposes transfer fees of 6–7%, making small remittances a burden for millions of families. Meanwhile, blockchain-based stablecoin transactions can reduce costs to less than 1% and complete in just a few minutes.
According to a report from Chainalysis, more than 50% of the total transaction value on exchanges in Colombia, Argentina, and Brazil in 2024–2025 will be stablecoin transactions. Brazil emerges as the region’s crypto hub, with a total transaction value of $318.8 billion, accounting for nearly a third of the entire Latin American region.
Latin American businesses pave the way for stablecoin integration
Not only individuals, but financial institutions and businesses in the region are also turning to stablecoins to optimize operating costs.
A Fireblocks survey found that 71% of Latin American businesses said they were ready to implement stablecoin payments and transactions, while only 7% cited lack of technical knowledge as the lowest barrier globally.
Companies in the gaming, fintech and e-commerce sectors are leading the wave, seeing stablecoins as the fastest, cheapest and most accessible global payment method.
Tokenization – the key to unlocking capital for the regional economy
The tokenization of real assets (RWA) is seen as the next big step, reducing the cost of raising capital and shortening the time to listing by up to 90% compared to traditional methods.
According to Bitfinex Securities, the digitization of assets such as bonds, shares or real estate will help small businesses in Latin America access international capital more easily – something that is limited by weak financial infrastructure.
Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities, believes that the combination of stablecoins and tokenization will “unlock financial capacity that has been held back for decades” in developing economies.
The future of Latin American finance: From banking to blockchain
According to data from Chainalysis, Latin America has become the world’s 7th largest cryptocurrency market, with strong growth in both retail and institutional trading.
Brazil is leading the way in enacting a regulatory framework for stablecoins and digital assets that facilitates innovation while ensuring consumer protection. Other countries like Mexico and Colombia are exploring similar models, promising a wave of financial transformation across the region.
Conclusion
The rise of stablecoins in Latin America reflects not only the urgent need for a stable and accessible financial system, but also the shift of financial power from banks to blockchain.
While developed economies are still debating regulation, Latin Americans have turned stablecoins into a practical solution for sending money, spending money, and protecting assets — a testament to the fact that financial innovation sometimes starts where the need is most urgent.