The landscape of cryptocurrency adoption in Latin America is rapidly evolving, with stablecoins like Circle’s USDC and Tether’s USDT emerging as preferred options for financial stability. According to a recent report from Bitso, these stablecoins account for an impressive 39% of total crypto purchases on their platform in 2024, up from previous years. This shift highlights the changing dynamics of the crypto market, particularly in response to the region’s challenging economic conditions.
High inflation rates and currency devaluations have driven many locals to seek reliable alternatives to traditional financial instruments. In this regard, stablecoins have established themselves as a crucial store of value for daily transactions and savings. As noted in the report, total stablecoin purchases surged by 9% from 2023, indicating a significant increase in user adoption.
While stablecoin purchases have soared, the same cannot be said for Bitcoin (BTC), which has witnessed a considerable decline in trading volume on Bitso. BTC’s market share dropped from 38% to 22% in just a few months. This trend reflects a growing preference for the hodl strategy, where users opt to buy and hold cryptocurrencies in anticipation of long-term price appreciation. The backdrop of a bull market, culminating in Bitcoin’s historic surge past $100,000 in December 2024, hasn’t spurred BTC purchases as one might expect.
Top Purchased Crypto Assets on Bitso in 2024:
- USDC – 24%
- USDT – 15%
- Bitcoin – 22%
As user purchasing patterns shift away from Bitcoin towards stablecoins, it’s clear that individuals in Latin America are seeking safety and predictability in their investments. The trend is notably evident in Argentina, which has become the leading market for USDT, where inflation rates have exceeded 100%. In Argentina, stablecoins accounted for an astounding 50% of crypto purchases on Bitso, compared to only 8% for Bitcoin.
While Argentina shows a pronounced preference for USDT and USDC, with their combined share reaching a remarkable 72% of total purchases, other countries like Brazil and Mexico display different trends. In Brazil, BTC remains the most popular asset but only accounts for 25% of total purchases. Mexican users are also favoring Bitcoin, which represents 22% of their crypto activity.
The stark difference in stablecoin adoption illustrates the impact of local economic challenges. Argentina’s dire situation with high inflation is compelling citizens to explore alternatives like stablecoins, which provide a protective measure against currency devaluation. In contrast, neighboring countries are still maintaining a focus on Bitcoin, reflecting varying degrees of economic stability and crypto maturity across the region.
As the adoption of stablecoins continues to grow, it is clear that they are becoming a fundamental component of the financial ecosystem in Latin America. The combination of economic instability and technological adoption is paving the way for a new era in which citizens can leverage the benefits of cryptocurrencies for both basic transactions and long-term investment strategies.
