Stablecoins have overtaken Bitcoin in popularity among Latin American crypto users, according to a n
Stablecoins have overtaken Bitcoin in popularity among Latin American crypto users, according to a new report from research firm, Kaiko. This trend, observed across seven major exchanges, highlights a growing preference for stable digital assets in the region.
Stablecoins more preferred than Bitcoin in Latin America, Kaiko study reveals
These crypto exchanges offer trading pairs with Latin American fiat currencies, with stablecoins emerging as three of the most traded assets on three of those platforms, according to Kaikos research. Notably, Binance handles nearly half of the crypto transactions in Latin America, with available data showing users prefer transacting in stablecoins.
Meanwhile, stablecoin-to-fiat pairs accounted for 63% of the top ten trading volumes across the seven listed crypto platforms. Kaiko‘s research also revealed that 40% of crypto trading volumes in Latin America involve Tether (USDT), suggesting that despite Bitcoin’s appeal as a hedge against currency debasement, stablecoins remain the preferred choice for many crypto users in the region.
Specifically, Kaiko noted that the stablecoin surge in Latin America began around 2021. The research firm also highlighted that the instability in the Brazilian economy and rising inflation have fueled increased stablecoin adoption in the country. According to Kaiko, nearly half of the crypto trades in Brazil involve stablecoins.
Comparing stablecoin and Bitcoin volumes, the report revealed that BTC trade volumes only surpassed stablecoins on Mercado Bitcoin, which handles almost 10% of the trade volume in the entire region.
According to Kaiko, following the increasing stablecoin traction in Latin America, Central Banks in the region are considering introducing Central Bank Digital Currencies (CBDCs) as an alternative. However, there are concerns about whether such Central Bank-issued assets can effectively compete with their decentralized counterparts.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
0.00