Stablecoins have overtaken Bitcoin in Latin America crypto purchases for the first time, according to a new report from Bitso. The findings mark a turning point for digital asset adoption in the region.
Stablecoins Overtake Bitcoin in Latin America Crypto Purchases
Bitso’s 2025 report on crypto adoption in Latin America shows that 40% of all crypto purchases on its platform were US dollar-linked stablecoins. Bitcoin accounted for just 18%. This is the first time stablecoins have surpassed Bitcoin in regional transaction volume.
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The data comes from Bitso’s nearly 10 million retail users across Latin America. The exchange described this trend as “digital dollarization.”
In countries with high inflation and currency depreciation, stablecoins offer a practical alternative. They allow users to store value in US dollar equivalents without needing a traditional bank account.
Industry watchers note that this shift reflects real economic pressures. People in Argentina, Brazil, and Mexico are turning to stablecoins for everyday financial needs.
Why Stablecoins Are Gaining Ground
The global stablecoin market has grown to roughly $320 billion. Adoption is expanding in both developed and emerging economies.
In Latin America, the appeal is practical. Users rely on stablecoins for three main purposes:
- Preserving savings against local currency devaluation
- Making payments for goods and services
- Sending cross-border remittances with lower fees
Local stablecoin projects are also gaining traction. Brazilian retail giant Mercado Libre launched a cross-border remittance product using its Meli dollar stablecoin in April 2026. The service covers users in Brazil, Mexico, and Chile.
This came after Mercado Libre discontinued its earlier stablecoin, Mercado Coin, earlier this year.
Bitcoin Still Dominant as a Store of Value
Despite losing ground in purchase volume, Bitcoin remains a key asset for long-term savings. The Bitso report notes that Bitcoin is held in 52% of crypto portfolios across the region in 2025. That figure is down only slightly from 53% in 2024.
“Bitcoin continues to function as Latin America’s primary long-term digital store of value,” the report said.
Bitcoin’s price has been volatile. The asset rose above $126,000 in October 2025 before pulling back sharply. It later traded in the low $60,000 range.
Research from index maker MarketVector argues that Bitcoin and gold share core traits. These include scarcity, decentralization, and resistance to supply expansion. The implication is that Bitcoin’s long-term value proposition remains intact.
Comparing Bitcoin and Gold as Store of Value
| Trait | Bitcoin | Gold |
|---|---|---|
| Scarcity | Fixed supply of 21 million coins | Limited above-ground supply |
| Decentralization | No central authority | Mined globally, no single issuer |
| Resistance to inflation | Proof-of-work mining limits new supply | Mining costs limit new supply |
| Portability | Digital, transferable instantly | Physical, requires secure transport |
This comparison shows why some investors still prefer Bitcoin for long-term holdings.
Impact on Regional Crypto Markets
The shift toward stablecoins has several implications for Latin America’s crypto markets.
First, it signals growing maturity. Users are moving beyond speculation toward practical financial tools. Stablecoins are being used for real economic activity, not just trading.
Second, it pressures regulators. Countries like Brazil and Mexico are already developing frameworks for stablecoin issuers. Clear rules could accelerate adoption further.
Third, it affects exchange business models. Platforms like Bitso may need to focus more on stablecoin services, including payment processing and remittance solutions.
What this means for investors is that regional crypto adoption is becoming more utility-driven. This could lead to more stable growth over time.
Broader Trends in Latin American Crypto Adoption
Latin America has long been a testing ground for crypto adoption. High inflation, limited banking access, and large remittance flows create natural demand.
Countries like Argentina have inflation rates exceeding 100%. Venezuela’s currency has collapsed entirely. In these environments, stablecoins provide a lifeline.
Data from Chainalysis shows that Latin America received over $500 billion in crypto value between 2021 and 2025. A growing share of that is in stablecoins.
The trend is not limited to retail users. Businesses are also adopting stablecoins for cross-border trade. They avoid traditional banking delays and fees.
Visa recently added support for Polygon and Base networks for stablecoin settlements. Its stablecoin settlement run rate hit $7 billion. This shows institutional demand is rising too.
Challenges and Risks
Stablecoins are not without risks. Tether’s USDT and Circle’s USDC are the most popular, but both have faced regulatory scrutiny.
USDT’s reserves have been questioned in the past. USDC briefly de-pegged during a banking crisis in 2023. Users need to understand these risks.
Regulatory uncertainty also looms. Some Latin American countries may impose restrictions on stablecoin use. Others may embrace them with clear rules.
Security is another concern. Users must store stablecoins in secure wallets. Exchange hacks and phishing attacks remain threats.
Despite these risks, the trend is clear. Stablecoins are becoming a cornerstone of Latin America’s crypto economy.
Conclusion
The Bitso report confirms that stablecoins overtake Bitcoin in Latin America crypto purchases. This shift reflects real economic pressures and practical needs. Dollar-linked tokens offer stability in volatile local economies. Bitcoin remains important for long-term savings, but stablecoins are winning the battle for everyday use. The implication is that Latin America’s crypto adoption is maturing. It is moving from speculation to utility. This could have lasting effects on the region’s financial systems.
FAQs
Q1: What does the Bitso report say about stablecoins in Latin America?
The report shows that 40% of crypto purchases in 2025 were stablecoins, surpassing Bitcoin at 18%. It marks the first time stablecoins have led in regional transaction volume.
Q2: Why are stablecoins more popular than Bitcoin in Latin America?
Stablecoins offer price stability tied to the US dollar. In countries with high inflation and currency depreciation, they provide a reliable store of value and medium for payments and remittances.
Q3: Is Bitcoin still important in Latin America?
Yes. Bitcoin is held in 52% of crypto portfolios across the region. It remains the primary long-term digital store of value, despite lower purchase volume.
Q4: Which stablecoins are most used in Latin America?
Tether’s USDT and Circle’s USDC are the most popular. Local stablecoins like Mercado Libre’s Meli dollar are also gaining traction.
Q5: What are the risks of using stablecoins?
Risks include regulatory uncertainty, potential de-pegging events, and security threats like exchange hacks. Users should store stablecoins in secure wallets and stay informed about local regulations.
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