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