Stablecoin use in Latin America is increasing, according to recent research from the crypto exchange Bitso. USDC and USDT have emerged as prominent value retailers, accounting for 39% of all Bitso purchases in 2024.
According to the research, stablecoin purchases are expected to climb by 9%. This spike is ascribed to the region's difficult macroeconomic conditions, such as rising inflation and currency depreciation. USDC leads the race, accounting for 24% of Bitso purchases. USDT follows closely at 15%. Meanwhile, Bitcoin's stake has fallen from 38% to 22%.
Argentina is the main market for USDT. Stablecoin purchases dominate the country's cryptocurrency activity, with USDT and USDC accounting for 50% and 22% of total purchases, respectively. Argentina has the lowest Bitcoin share of all of the countries analyzed, at 8%. In contrast, Brazil and Mexico continue to prefer Bitcoin. It remains the most popular crypto in these countries, accounting for 22% and 25%, respectively.
The move to stablecoins shows a desire for financial stability in the face of economic and political instability. As Latin American users look to secure their investment, USDC and USDT have emerged as appealing options.
This research by Bitso shows the changing nature of crypto in Latin America. Stablecoins are increasingly seen as a trustworthy store of value. However, Bitcoin remains popular as a long-term investment in specific areas.
