The Executive Secretariat of the Central American Monetary Council (SECMCA) has proposed the creation of a stablecoin for Central America, known as the Central American Peso ($CA), aimed at enhancing financial stability and reducing transaction costs.
Goals and Initiatives for $CA
The initiative seeks to strengthen monetary stability and financial integration across Central America and the Dominican Republic. A key objective is to lower transaction costs in the region, helping to address numerous economic challenges, including inflation and local currency volatility.
Current Use and Stablecoin Adoption
Stablecoins such as USDC, USDT, and DAI are currently actively used in Central America. Many countries are also considering cryptocurrency regulations to modernize their financial systems. However, the success of the $CA project depends on political will and interest from regional governments, as well as cooperation among national central banks to establish necessary governance.
Increasing Popularity of Stablecoins in Latin America
In Colombia, 13.7% of FinTech companies currently use stablecoins, and this figure is expected to grow significantly by 2027. In Brazil, transactions involving USDT reached 9.63 billion Brazilian reais (approximately $1.7 billion USD) in June alone, representing a 32% increase compared to May, solidifying Brazil's position as a regional leader in adoption.
The proposal to introduce the Central American stablecoin $CA may significantly enhance financial integration and stability in the region, but its implementation relies on political will and coordinated actions among states.
