Coinpaper
January 5, 2026 5:39 AM UTC

Stablecoins Overtake Bitcoin in Latin America Crypto Boom

Bitcoin only accounted for about 18% of transactions in the region. The shift is driven by regional economic conditions like inflation, currency depreciation, and limited banking access, which led users to adopt dollar-backed digital assets for payments, savings, and remittances. Latin America Turns to Stablecoins Digital asset adoption in Latin America is undergoing a shift, as stablecoins overtook Bitcoin as the most purchased type of cryptocurrency in the region. According to Bitso’s 2025 report , 40% of crypto purchases were tied to US dollar-backed stablecoins like USDT and USDC, while Bitcoin accounted for just 18%. This marks the first time stablecoins surpassed Bitcoin in terms of purchase share among users on the platform, which serves almost 10 million retail customers. Assets purchased in 2025 (Source: Bitso) This change reflects the economic realities across Latin America. Many countries in the region face high inflation, weakening local currencies, and limited access to traditional financial infrastructure. In this environment, stablecoins offer a practical alternative by allowing users to hold and transact in digital assets that mirror the value of the US dollar. This trend has been described as “digital dollarization,” where people rely on dollar-linked digital currencies rather than their domestic fiat currencies. Although the US dollar itself is not immune to inflation, it tends to be more stable than many Latin American currencies. As a result, stablecoins have become a preferred tool for preserving purchasing power, facilitating everyday transactions, and enabling cross-border remittances. Their use expanded across both emerging and developed markets, and helped the global stablecoin market reach an estimated $320 billion. At the same time, local innovation is also playing a role. Companies like Mercado Libre have introduced new stablecoin-based remittance solutions, which integrated digital assets even more into everyday financial use cases. Despite the decline in its share of purchases, Bitcoin is still a cornerstone of crypto adoption in Latin America. It functions as a long-term store of value, with over half of crypto portfolios in the region still holding Bitcoin. Its appeal lies in its scarcity, decentralized nature, and resistance to supply inflation, characteristics often compared to gold. Overall, stablecoins are becoming the dominant tool for everyday financial activity, while Bitcoin keeps its role as a long-term savings asset.