Stablecoins Overtake Bitcoin in Latin America Crypto Boom

Bitso’s 2025 report shows a structural shift in Latin America’s crypto demand: dollar-backed stablecoins (e.g., USDT/USDC) made up 40% of purchases on the platform while Bitcoin accounted for 18%. The move reflects regional economic pressures — high inflation, currency depreciation and constrained banking — driving “digital dollarization” as users favor stablecoins for payments, savings and remittances. The trend expands use cases (everyday transactions and cross-border flows), supports stablecoin market growth (estimated ~$320 billion globally) and spurs local product innovation (e.g., Mercado Libre’s stablecoin remittance tools). Market impact: increased retail demand and utility for USD‑pegged tokens may compress Bitcoin’s share of transactional activity, though BTC remains a predominant long‑term store of value in regional portfolios. Expect continued growth in stablecoin on‑ramps, remittance solutions and regulatory scrutiny as volumes and real‑economy usage rise.