Stablecoins in Latin America: Why USDT and USDC Are Becoming Digital Dollars

Stablecoins are becoming one of Latin America’s most important crypto use cases.

In 2025, dollar-linked stablecoins such as USDT and USDC accounted for 40% of crypto purchases on Bitso, compared with 18% for Bitcoin.

The reason is simple.

For many users, stablecoins are not primarily a bet on crypto prices.

They are a way to access digital U.S. dollars.

Educational research only. This article is not investment advice.

What Is a Stablecoin?

A stablecoin is a digital token designed to maintain a relatively stable value.

The most widely used dollar stablecoins include:

USDT — Tether

USDC — USD Coin

Both aim to remain close to:

1 token ≈ US$1

Unlike Bitcoin, their purpose is not large price appreciation.

They are designed primarily for:

  • storing dollar-linked value;
  • transferring money;
  • trading;
  • payments;
  • cross-border settlement.

That makes them particularly relevant in economies where local currencies can be volatile.

Why Stablecoins Are Growing in Latin America

Latin America combines several conditions that can make digital dollars attractive:

  • currency volatility;
  • inflation;
  • demand for U.S. dollars;
  • large remittance flows;
  • expensive cross-border payments.

Chainalysis estimates Latin America processed nearly $1.5 trillion in cryptocurrency transactions between July 2022 and June 2025.

It also found stablecoin purchases represented more than half of exchange purchases involving the Argentine peso, Brazilian real and Colombian peso during part of 2024–2025.

The basic appeal is:

Local Currency → Stablecoin → Dollar-Linked Value

Argentina Shows the Trend Clearly

Argentina provides one of the strongest examples.

Bitso found that in the first half of 2025:

USDT represented 78% of Argentine crypto purchases.

USDC added another 7%.

That meant approximately 85% of crypto purchases in Argentina were digital dollars.

This reflects Argentina’s long-standing preference for saving in U.S. dollars during periods of peso instability.

Stablecoins can provide access without requiring users to hold physical dollar notes.

Brazil, Mexico and Colombia Are Growing Too

The trend is broader than Argentina.

Bitso’s first-half 2025 data showed stablecoins represented roughly:

  • 35% of purchases in Brazil
  • 43% in Colombia
  • 36% in Mexico

Brazil is particularly important.

Chainalysis estimated Brazil received about $318.8 billion in crypto value during its latest regional study period, making it the largest crypto market in Latin America.

Stablecoins are increasingly part of payments, treasury management and cross-border transactions there.

Why Businesses Use Stablecoins

The use case is not limited to individuals.

Bitso Business reported that stablecoin adoption among its institutional clients doubled from the second half of 2024 to the first half of 2025.

FX, treasury management and arbitrage together accounted for approximately 45% of processed institutional volume.

Companies can potentially use stablecoins to:

  • settle international payments;
  • move funds between countries;
  • manage dollar liquidity;
  • reduce settlement delays;
  • operate outside banking hours.

This is why stablecoins are increasingly described as financial infrastructure, rather than simply another cryptocurrency.

Stablecoins Are Not the Same as Bank Dollars

This distinction is crucial.

Holding USDT or USDC is not identical to holding dollars in an insured bank account.

Stablecoin users face additional risks.

Issuer Risk

The token depends on the company responsible for maintaining its reserves and redemption structure.

Depeg Risk

A stablecoin can temporarily trade below or above $1.

Custody Risk

Tokens can be lost through compromised wallets, exchanges or private keys.

Regulatory Risk

Governments can change the rules surrounding stablecoin issuance and use.

Blockchain Risk

Transfers depend on blockchain networks, which may experience congestion, fees or technical problems.

Digital dollars can therefore be useful without being risk-free.

Stablecoins vs Bitcoin

Bitcoin and stablecoins serve different purposes.

Bitcoin
Primarily offers exposure to a scarce, volatile digital asset.

Stablecoins
Primarily aim to preserve dollar-linked purchasing power and liquidity.

Bitso’s 2025 data demonstrates this distinction well.

Stablecoins led new purchases, while Bitcoin still represented around 52% of crypto portfolio holdings across the region.

Users can therefore hold Bitcoin for longer-term exposure while using stablecoins for day-to-day dollar liquidity.

How Risk Simulation Fits

TradingSimuLab’s Risk Simulation framework encourages investors to consider downside as well as convenience.

For crypto assets, useful questions include:

VaR
How severe could losses become during stressed markets?

CVaR
What happens beyond the normal downside threshold?

Max Drawdown
How large could peak-to-trough losses become?

Stablecoins normally have far lower price volatility than Bitcoin.

But their risks are different.

Instead of focusing only on price volatility, users must consider:

Issuer + Custody + Liquidity + Depeg + Regulatory Risk

We are not assigning live TradingSimuLab risk scores here.

Final Takeaway

Stablecoin adoption in Latin America is growing because many users want something very familiar:

access to U.S. dollars.

The difference is the infrastructure.

The emerging chain is:

Local Currency → Digital Dollars → Savings + Payments + Cross-Border Transfers

USDT and USDC may therefore be more useful to many Latin American users as financial tools than as speculative investments.

The key question is not:

“Will a stablecoin rise in price?”

It is:

“Can digital dollars provide cheaper, faster and reliable access to dollar-linked value without introducing unacceptable new risks?”

For more Latin American market research, crypto risk analysis and model-based insights, sign up to TradingSimuLab and explore the platform.

Continue exploring TradingSimuLab.

  • Corporate Debt Refinancing Explained: Why High Interest Rates Can Hurt Companies Years Later

    Educational research only — not investment advice. High interest rates do not always hurt companies immediately. A business may have borrowed money years ago at a low fixed rate. As long as that debt has not matured, its interest cost may barely change. The real problem often appears later, when the company has to refinance…

  • Stocks vs Bonds in 2026: Is a 5% Treasury Yield Changing the Risk-Reward?

    Educational research only — not investment advice. The 10-year Treasury yield has moved above 5%, changing an important calculation for investors. For years, very low bond yields encouraged investors to take more risk in stocks. Today, U.S. government bonds offer a much higher return without requiring investors to accept the same business and earnings risks…

  • Treasury Buybacks Explained: Can the U.S.Government Calm a Bond Market Selloff?

    Educational research only — not investment advice. Treasury buybacks are getting more attention as U.S. bond yields rise. The U.S. Treasury has recently increased some buyback operations, especially in longer-term bonds. But what are Treasury buybacks, and can they actually calm a bond market selloff? What Is a Treasury Buyback? A Treasury buyback happens when…

  • Diesel Prices Near Record Highs: Why a Global Diesel Squeeze Can Hit Inflation and Transport Stocks

    Educational research only — not investment advice. Diesel prices today are becoming an increasingly important macro risk. U.S. diesel prices recently crossed $6 per gallon for the first time, while diesel refining margins in Asia have also reached record levels. The pressure reflects a global shortage of refined fuel caused by refinery disruptions, geopolitical conflict…

  • AI Spending Boom: Can $795 Billion of Tech Capex Keep Growing?

    Educational research only — not investment advice. The AI spending boom is reaching extraordinary levels. Technology companies are pouring hundreds of billions of dollars into GPUs, data centers, networking equipment, power infrastructure and cloud capacity. Industry spending linked to the AI buildout is expected to exceed $795 billion in 2026 and could rise beyond $1…

  • Software Stocks vs AI Chip Stocks: Is the AITrade Rotating From Hardware to Software?

    Educational research only — not investment advice. For much of the AI boom, AI chip stocks dominated the market. Nvidia and other semiconductor companies benefited as technology giants spent heavily on GPUs, data centers and AI infrastructure. But the next phase of the AI stock trade may look different. Recent market moves have raised a…

  • Mortgage Rates Above 7%: Why U.S. Homebuyers Are Pulling Back Again

    Educational research only — not financial advice. Mortgage rates today are once again putting pressure on the U.S. housing market. Mortgage News Daily’s average 30-year fixed rate reached 7.22% on September 15, up sharply from below 6.9% only a week earlier. Freddie Mac’s weekly survey, which moves more slowly, showed an average rate of 6.76%.…

  • Bitcoin Below $80,000: Is This a Pullback or a Failed Breakout?

    Educational research only — not investment advice. The Bitcoin price today is back near $75,000–$76,000 after briefly approaching $80,000 earlier this week. That reversal raises an important technical question: Is Bitcoin experiencing a normal pullback — or did its latest attempt to break above $80,000 fail? The distinction matters because a healthy pullback can preserve…

  • Nvidia vs the AI Slowdown Debate: Can AI Chip Demand Keep Growing?

    Nvidia vs the AI Slowdown Debate: Can AI Chip Demand Keep Growing? Educational research only — not investment advice. Nvidia stock has become one of the clearest market proxies for the artificial-intelligence boom. But after years of extraordinary AI infrastructure spending, investors are asking a harder question: how long can demand for Nvidia’s AI chips…