Stablecoins have emerged as a popular choice among crypto users in Latin America, overtaking Bitcoin in terms of popularity, according to a recent report from research firm Kaiko. The study, which covered seven major exchanges in the region, revealed that stable digital assets are preferred over Bitcoin by many users. This trend is particularly evident in the trading volumes of stablecoins compared to Bitcoin on these platforms.
The analysis conducted by Kaiko found that stablecoins are among the most traded assets on three of the seven listed crypto exchanges that offer trading pairs with Latin American fiat currencies. In fact, stablecoin-to-fiat pairs accounted for 63% of the top ten trading volumes across these platforms. The research also showed that Binance, one of the leading exchanges in Latin America, handles nearly half of the crypto transactions in the region, with users showing a preference for transacting in stablecoins.
Notably, Tether (USDT) was found to account for 40% of the crypto trading volumes in Latin America, indicating a strong preference for stablecoins over Bitcoin. The report attributed the surge in stablecoin adoption in the region to factors such as economic instability and rising inflation, particularly in countries like Brazil. Nearly half of the crypto trades in Brazil involve stablecoins, according to Kaiko’s research, highlighting their growing popularity in the country.
While Bitcoin trade volumes surpassed stablecoins on Mercado Bitcoin, which handles a significant portion of the trade volume in Latin America, the overall trend in the region favors stable digital assets. In response to the increasing popularity of stablecoins, Central Banks in Latin America are reportedly considering the introduction of Central Bank Digital Currencies (CBDCs) as an alternative. However, there are concerns about whether these Central Bank-issued assets can effectively compete with decentralized stablecoins.
It is important to note that the information provided in the report is for informational and educational purposes only and does not constitute financial advice. Readers are advised to exercise caution and conduct their own research before making any investment decisions based on the content mentioned. Coin Edition, the source of the information, is not liable for any losses incurred as a result of actions taken based on the content of the report.
