A new report from cryptocurrency exchange Bitso examines the rise in stablecoin adoption in Latin America. According to the report, USDC and USDT stablecoins are becoming a reliable store of value in the region.
Rise in Stablecoin Popularity
Bitso reported that USDC and USDT stablecoins account for 39% of all purchases on the platform in 2024. Stablecoin purchases surged by 9% from 2023. The report highlights challenging macroeconomic conditions, such as high inflation and currency devaluations in Latin America, making stablecoins a reliable choice for storing value.
Decline in Bitcoin Purchases
While stablecoin purchases increased, Bitcoin activity on Bitso saw a notable decline. In 2024, BTC's share dropped to 22% from 38% in the second half of 2023. This decline was attributed to the 'hodl' strategy preference, where cryptocurrency is bought and held for long-term value appreciation. By the end of 2024, Bitcoin hit an all-time high of 100,000 USD.
Argentina Leads in USDT Purchases
Argentina stands out as a leader in USDT stablecoin purchases amid the country's high inflation. In 2024, USDT purchases accounted for 50% of all cryptocurrency purchases on Bitso in Argentina, while Bitcoin was just 8%. BTC purchases in Brazil and Mexico remained significant at 22% and 25% respectively.
The rise in stablecoin popularity in Latin America underscores the importance of cryptocurrencies as a means to hedge against economic instability. Argentina and other countries in the region increasingly use USDC and USDT as primary tools for capital preservation and protection.
