Stablecoins in Latin America surpass Bitcoin... "Digital dollarization" spreads

In the Latin American cryptocurrency market, compared to Bitcoin (BTC), the preference for dollar-pegged stablecoins is becoming more evident. Analysis suggests that factors such as high inflation, currency devaluation, and limited financial accessibility have accelerated the trend of “digital dollarization” to protect assets. According to a report by CoinTelegraph on the 13th, Bitso’s 2025 report shows that the purchase volume of stablecoins has surpassed Bitcoin for the first time.

USDT and USDC account for 40% of total purchases

Based on data from approximately 10 million individual users on its exchange, Bitso analyzed cryptocurrency adoption in Latin America. The survey results indicate that in 2025, 40% of all cryptocurrency purchases were stablecoins like Tether’s USDt (USDT) and Circle’s USDC (USDC), while Bitcoin only accounted for 18%. This marks the first time stablecoin purchases in the region have exceeded Bitcoin.

This shift is more closely related to practical living needs than purely investment preferences. The report points out that in Latin America, stablecoins are used as savings tools, payment methods, and cross-border remittance instruments. Although the US dollar itself is not completely immune to inflation, it depreciates more slowly relative to many local currencies and is regarded as a stable benchmark as a global reserve currency.

Background of the spreading “Digital Dollarization”

In many Latin American countries, recurring inflation and currency instability have increased demand for acquiring US dollar assets outside the banking system directly. In this environment, stablecoins are becoming a relatively easy way to hold “digital dollars.”

The global stablecoin market size has grown to approximately $320 billion, with adoption rates rising in both developed and emerging markets. In Latin America, practicality is especially a key advantage. Stablecoins are not only used for daily savings but also see high usage in remittances and payment settlements. Major Brazilian retailer MercadoLibre (MELI) also launched a cross-border remittance service based on “Meli Dollar” for users in Brazil, Mexico, and Chile in early April.

Bitcoin: Reduced share but still a “store of value”

Although the proportion of stablecoins has increased, Bitcoin’s role has not diminished. Bitso assesses that Bitcoin remains the most important long-term asset in Latin America. By 2025, Bitcoin accounts for 52% of the region’s cryptocurrency portfolios, compared to 53% last year.

Despite its price volatility, Bitcoin has long been regarded as a “store of value” due to its scarcity, decentralization, and limited supply expansion. Recently, Bitcoin once surged past $126k in October but then sharply dropped to just over $60k, highlighting its volatility again. Nevertheless, market assessments suggest that a bifurcated trend is becoming more apparent: stablecoins are used for short-term storage and payments, while Bitcoin is favored for long-term holdings.

The adoption changes in Latin America indicate that the cryptocurrency market is shifting from being centered on “speculative assets” to “everyday financial tools.” Especially significant is the fact that stablecoins have surpassed Bitcoin, which demonstrates that the region’s economic structural instability is changing the way digital assets are used.

Article summary by TokenPost.ai 🔎 Market insights: In Latin America, stablecoin purchases have surpassed Bitcoin, indicating a shift from speculation to everyday financial tools. Inflation and currency instability have driven demand for digital dollars. 💡 Strategic points: Stablecoins are used for short-term storage, payments, and remittances, while Bitcoin is seen as a long-term asset, with roles gradually diverging. In emerging markets, assets based on “stability and practicality” are prioritized. 📘 Terminology explanations: Stablecoin: Cryptocurrency pegged to fiat currency (e.g., US dollar) Digital dollarization: Phenomenon of obtaining US dollar value through stablecoins without holding actual dollars Store of value: Investment asset that maintains value over the long term

💡 Frequently Asked Questions (FAQ)

Q. Why are stablecoins more widely used in Latin America? This is because high inflation and currency devaluation make dollar-pegged stablecoins a more stable store of value. Additionally, their functions for payments and remittances are convenient and widely applied in daily life. Q. What is digital dollarization? It refers to the phenomenon of obtaining US dollar value through stablecoins without actually holding US dollars. Its feature is that assets denominated in dollars can be easily held and used without banks. Q. Is Bitcoin no longer important? Not quite. Bitcoin still plays an important role as a long-term store of value, and its proportion in investment portfolios remains high. However, in short-term use, stablecoins are more widely applied.

TP AI notes: This summary was generated using a language model based on TokenPost.ai. It may omit main content from the original text or differ from actual facts.