USDC, USDt stablecoins are ‘store of value’ in Latin America — Bitso
According to a recent report from Bitso, stablecoin adoption in Latin America is on the rise, with users increasingly turning to Circle’s USDC and Tether’s USDT for financial reliability. The third edition of the Latin America Crypto Landscape report indicates that stablecoins accounted for 39% of total purchases on Bitso in 2024, marking a 9% increase from the previous year.
The macroeconomic landscape in Latin America, characterized by high inflation and currency devaluation, has been a significant factor driving this shift toward cryptocurrencies, particularly stablecoins, which serve as a reliable store of value. This trend demonstrates a growing preference for digital currencies amid challenging economic conditions.
While stablecoin transactions surged, Bitcoin’s trading volume experienced a notable decline, dropping to 22% in 2024 from 38% in the latter half of 2023. This decline reflects a shift in user strategy towards a “hodl” approach — buying and holding Bitcoin for long-term value appreciation. This trend coincided with a significant bull market, during which Bitcoin prices soared past $100,000 for the first time in history in December 2024.
As user interest in holding Bitcoin grew, the purchasing activity increasingly shifted towards stablecoins. USDC emerged as the leading stablecoin, constituting 24% of total purchases, while USDT accounted for 15%. This strategic pivot underscores a preference for stability over the previous volatility associated with Bitcoin trading.
Regionally, Argentina stands out as a significant market for USDt, boasting a staggering 50% of all crypto purchases in the country in 2024. This preference stems from Argentina’s battle with inflation rates exceeding 100%, driving residents to digital assets as safer alternatives for their financial activities. Meanwhile, USDC accounted for an additional 22% of purchases in Argentina.
In contrast, Bitcoin remains a preferred option among users in Brazil and Mexico, where it represents 22% and 25% of purchases, respectively. In Argentina, however, Bitcoin only made up 8% of total purchases, the lowest share among the countries analyzed in the report.
This data emphasizes the transformative impact of stablecoins in the region, particularly in areas grappling with economic instability. As cryptocurrencies continue to evolve, the landscape in Latin America is likely to witness more users seeking out assets that provide financial stability in uncertain times.
