Latin America's Stablecoin Revolution: How USDT and USDC Captured 90% of Regional Crypto Commerce
In July 2022, stablecoins represented about 60% of crypto transfer volume on Latin American exchanges. By July 2025, that figure had soared to over 90%. This isn't just adoption—it's a fundamental rewiring of how 650 million people interact with money.
Latin America has become ground zero for stablecoin utility. While Western markets debate whether stablecoins are securities or payment instruments, Latin Americans are using them to protect savings from 100%+ inflation, send remittances at 1% fees instead of 10%, and conduct cross-border business without the friction of traditional banking. The region received $415 billion in crypto value between July 2023 and June 2024—9.1% of global flows—with year-over-year growth of 42.5%.
This isn't speculation-driven adoption. It's survival-driven innovation.
The Numbers Behind the Revolution
The scale of Latin America's stablecoin adoption is staggering when you look at the data.
Brazil dominates the region with $318.8 billion in crypto value received, accounting for nearly one-third of all LATAM crypto activity. Over 90% of Brazilian crypto flows are now stablecoin-related. The country's crypto transaction volumes rose 43% in 2025, with average investment per user surpassing $1,000.
Argentina ranks second with $93.9 billion in transaction volume. Stablecoins account for 61.8% of transaction volume—well above the global average. On Bitso, Argentina's leading exchange, USDT and USDC together represent 72% of all cryptocurrency purchases. As the country enters 2026, 20% of its population now uses crypto.
Mexico recorded $71.2 billion in crypto transaction volume. The country is projected to reach 27.1 million cryptocurrency users by 2025, representing a penetration rate exceeding 20% of the population. Bitso alone processed $6.5 billion in U.S.-Mexico crypto remittances in 2024—roughly 10% of the entire corridor.
The regional crypto market is projected to grow from $162 billion in 2024 to over $442 billion by 2033. This isn't fringe adoption anymore.
Why Stablecoins Won Latin America
Three forces converged to make stablecoins indispensable across the region: inflation, remittances, and capital controls.
The Inflation Hedge
Argentina's story is the most dramatic. In 2023, inflation hit 161%. By 2024, it reached 219.89%. While President Milei's reforms have brought it down to 35.91% in 2025, Argentines had already discovered a workaround: digital dollars.
The peso's collapse pushed households toward USDT and USDC as direct substitutes for cash savings. Local platforms like Ripio, Lemon Cash, and Belo reported 40-50% surges in stablecoin-to-peso transactions following government-imposed currency controls. More than 100 businesses in Buenos Aires now accept stablecoins for payments through Binance Pay and Lemon Cash.
This isn't just savings protection—it's de facto digital dollarization. The province of Mendoza even accepts tax payments in stablecoins. While Argentina's government debates launching a CBDC, its citizens have already adopted the digital dollar via USDT and USDC.
The Remittance Revolution
Mexico offers a different angle. Traditional remittance and cross-border bank fees to Mexico can range from 5% to 10%, with settlement times of several days. Stablecoin-based transactions have reduced these costs to under 1%, with funds settling in minutes.
Bitso processed $43 billion in cross-border remittances between the U.S. and Mexico in 2024. This isn't a pilot program—it's mainstream infrastructure. In crypto rails are now part of Mexico's remittance ecosystem alongside traditional providers.
The efficiency gains are transforming business payments too. Brazilian companies use crypto to avoid high bank fees for payments to suppliers in Asia. Mexican SMEs are discovering that global stablecoin accounts can cut cross-border transaction costs dramatically.
The Currency Volatility Shield
Beyond inflation, currency volatility drives stablecoin demand across the region. Businesses operating cross-border need predictable values. When local currencies swing 5-10% in weeks, dollar-pegged stablecoins become essential for financial planning.
The trifecta of persistent inflation, currency volatility, and restrictive capital controls across several countries continues to drive demand for stablecoins as a safe store of value and hedge against local macroeconomic risk.
Local Stablecoins: Beyond the Dollar
While USDT and USDC dominate, local currency stablecoins are emerging as a significant trend.
In Brazil, trading volume for BRL-pegged coins reached $906 million in the first half of 2025—approaching 2024's entire annual total. The BRL1 stablecoin, launched by a consortium including Mercado Bitcoin, Foxbit, and Bitso, is fully backed 1:1 by BRL reserves. The volumes of BRL-linked stablecoins grew from $20.9 million in 2021 to around $900 million in July 2025.
Mexico's peso-linked stablecoins have grown more than tenfold in the past year. The MXNB and MXNe tokens reached $34 million in July 2025, up from less than $55,000 just one year prior. These tokens are expanding use beyond remittances into local payments.
This dual-track system—dollar stablecoins for savings and cross-border transfers, local stablecoins for domestic commerce—represents a maturing market that serves multiple use cases simultaneously.
The Regulatory Landscape: From Chaos to Clarity
2025 marked a turning point for Latin American crypto regulation. The region shifted from reactive, AML-only oversight toward more structured frameworks that reflect actual adoption patterns.
Brazil: Full Framework Goes Live
Brazil's regulatory regime for Virtual Asset Service Providers (VASPs) finally went live in November 2025. The Central Bank of Brazil (BCB), designated as lead supervisor in 2023, published three resolutions operationalizing its regulatory powers.
Key provisions include:
- Enhanced reporting obligations for transactions exceeding $100,000
- Foreign exchange and payments oversight for stablecoin transactions
- A new tax regime: all crypto capital gains are now taxed at a flat 17.5%, replacing the previous progressive model that exempted small traders
Brazil also introduced DeCripto, replacing existing crypto reporting rules. Based on the OECD's Crypto-Asset Reporting Framework (CARF), DeCripto aligns Brazil with international standards adopted by 60+ countries.
Argentina: Innovation-Friendly Registration
Argentina raised requirements under its VASP registration regime in 2025. General Resolution 1058, effective May 2025, introduced requirements for AML compliance, segregation of customer assets, cybersecurity, audit, and corporate governance.
More significantly, General Resolutions 1069 and 1081 introduced a formal legal framework for tokenized assets, to be piloted in a regulatory sandbox. Crypto capital gains are taxed up to 15%, with additional income tax on business and mining activities.
Mexico: Cautious Distance
Mexico's approach remains more conservative. Under the 2018 Fintech Law, crypto is classified as a virtual asset. Banks and fintechs need licenses for crypto services, though non-bank VASPs can operate by reporting to financial intelligence and tax authorities.
The Bank of Mexico has maintained what it calls "a healthy distance" from crypto, warning that "stablecoins pose significant potential risks to financial stability." The central bank cites heavy reliance on short-term U.S. Treasuries, market concentration (two issuers control 86% of supply), and past depegging episodes.
Despite regulatory caution, Mexico hosted Latin America's first large-scale stablecoin conference in 2025—a sign that the industry is maturing regardless of official sentiment.
The Platforms Winning the Region
Several platforms have emerged as dominant forces in Latin American crypto:
Bitso has become the region's infrastructure backbone. It holds licenses in Mexico, Brazil, and Argentina, plus authorization in Gibraltar. Processing $6.5 billion in U.S.-Mexico remittances and facilitating the majority of exchange-based stablecoin trades across multiple countries, Bitso has proven that regulatory compliance and scale can coexist.
Binance leads retail app activity, capturing 34.2% of sessions in Argentina. Its Binance Pay product enables merchant adoption across urban centers.
Lemon Cash holds 30% of retail sessions in Argentina, focusing on the local market's specific needs around peso-stablecoin conversion.
New entrants like Chipi Pay are targeting the unbanked with self-custodial stablecoin wallets accessible via email—no bank account required.
Demographics: Gen Z Leads the Charge
Brazil's fastest-growing crypto cohort in 2025 was users under 24. Participation among that age group increased 56% from the previous year. Many young investors are opting for low-volatility assets like stablecoins rather than speculative tokens.
This generational shift suggests stablecoin adoption will accelerate as younger users enter their peak earning years. They've grown up with currency instability and see stablecoins not as crypto speculation but as practical financial tools.
What Comes Next
Several trends will shape Latin America's stablecoin future:
B2B adoption is accelerating. In Brazil, B2B stablecoin volumes hit $3 billion monthly, as businesses discover that crypto rails reduce FX risks in cross-border deals.
Regulatory frameworks will spread. With Brazil and Argentina establishing clear rules, pressure mounts on Colombia, Peru, and Uruguay to follow. The Coinchange 2025 LATAM Crypto Regulation Report notes that the region is "entering a new phase of crypto regulation—shifting from isolated initiatives to a coordinated effort."
Local stablecoins will multiply. The success of BRL1 and MXN-pegged tokens demonstrates demand for locally denominated digital assets. Expect more launches as the infrastructure matures.
CBDC competition may emerge. Several Latin American central banks are exploring digital currencies. How CBDCs interact with—or compete against—private stablecoins will define the next chapter.
The Bigger Picture
Latin America's stablecoin revolution reveals something important about how crypto adoption actually happens. It doesn't come from speculation or institutional mandates. It comes from utility—from people solving real problems with available tools.
When your savings lose 100% of their value annually, USDT isn't a speculative asset. It's a lifeline. When remittance fees eat 10% of your family's income, USDC isn't fintech innovation. It's basic financial fairness.
The region has become a proving ground for stablecoin utility at scale. With over $415 billion in annual crypto flows, regulatory frameworks taking shape, and 90% stablecoin dominance, Latin America demonstrates what happens when digital dollars meet genuine economic need.
The rest of the world is watching. And increasingly, it's copying.
This article is for educational purposes only and should not be considered financial advice. Always conduct your own research before interacting with any cryptocurrency or stablecoin.