Stablecoins Help Latin Americans Cope With Inflation

Stablecoins like USDT have become vital in Latin America, assisting people in managing ongoing economic difficulties.

A Chainalysis report reveals that this region accounts for 9.1% of the global cryptocurrency value, with significant growth driven by increased institutional interest and consumer adoption.

From July 2023 to June 2024, Latin America received about $415 billion in crypto, slightly outpacing East Asia despite lower adoption rates.

Argentina led with $91.1 billion, followed by Brazil with $90.3 billion, where institutional activity surged by 48.4% between Q4 2023 and Q1 2024.

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In nations like Argentina and Brazil, dollar-pegged stablecoins are crucial for protecting against inflation, especially as local currencies lose value.

Argentina’s inflation hit 143% in 2023, pushing citizens to find ways to secure their savings against the devaluation of the peso. Following President Javier Milei’s new economic policies, stablecoin trading volumes surged past $10 million when the peso fell below $0.002 in December 2023.

Brazil also saw a 29.2% increase in large transactions over $1 million in late 2023, fueled by the SEC’s approval of Bitcoin and Ethereum ETFs.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.