By Ana Belén*
Dec 13, 2024, 2:59 PM EST
Inflation, low banking coverage, and limited access to traditional financial tools are challenges that millions of Latin Americans face daily. For many, especially those sending remittances from the United States or seeking to protect their savings against devaluation, stablecoins, cryptocurrencies designed to maintain a stable value by being backed by assets such as the US dollar, are emerging as an innovative solution.
In 2024, the use of stablecoins has reached historic levels in Latin America. According to the Chainalysis 2024 Geography of Cryptocurrency report, Latin America is the second region with the highest crypto adoption in the world and indicates that countries such as Argentina and Venezuela drive this growth due to the use of stablecoins in remittances and as protection against inflation, in addition, among Mexico and the United States are the most important corridor for the flow of remittances; 63 billion dollars circulated in 2023 according to Banxico.
For Latinos in the United States, this phenomenon has a direct impact. According to a report from the Inter-American Development Bank (IDB), it is estimated that remittances to Latin America and the Caribbean represented an increase of 9.5% compared to the $142 billion registered in 2022. These digital currencies, linked to the value of stable assets such as the dollar, eliminate costly intermediaries, reduce transfer times and ensure that families in countries like Mexico, El Salvador and Colombia receive more of the money sent to them.
But its impact goes beyond remittances. Stablecoins are helping to close the financial inclusion gap in historically underserved communities. For those without access to bank accounts — 45% of the adult population in Latin America, according to data from the Inter-American Development Bank — these digital tools represent a gateway to the global economy. From mobile apps that facilitate payments to platforms like Arbitrum that enable fast, low-cost transactions, blockchain technology is leveling the playing field.
Towards a more inclusive future
The potential of stablecoins lies in their ability to address structural problems in emerging economies. However, there is still work to be done. To maximize their impact, it is necessary to promote digital financial education and ensure that these technologies are accessible, especially for women, entrepreneurs and rural communities.
Blockchain infrastructure can transform the region’s digital economy, strengthening financial access for millions of people. For Latinos in the United States, who know firsthand the challenges their families face at home, stablecoins are not only a practical tool, but also a long-term solution to building a more equitable future.
As stablecoin adoption continues to grow, the opportunity to empower millions of Latinos, both in the United States and Latin America, is closer than ever. With easier and faster access to your funds, lower transaction costs, and greater protection against inflation and devaluation, these digital currencies offer a path to strengthening the economic resilience of communities. By enabling transactions without the need for intermediaries, stablecoins allow more people to participate in the global economy, regardless of their location or access to traditional banking services.
On the path to a more inclusive future, it is crucial that we continue to educate communities about the benefits and risks of cryptocurrencies. As blockchain infrastructure continues to advance, stablecoins have the power to redefine personal finance in Latin America, removing barriers and creating new opportunities for those who need it most. Without a doubt, this technology is playing an essential role in creating a more accessible, equitable and transparent financial system for all.
Ana Belen
is Global & Latam Community Manager at Arbitrum Foundation, an organization dedicated to promoting blockchain technological infrastructure in the region.
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