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Stablecoin Adoption in Latin America Set to Grow Amid High Inflation

Last year’s global turmoil for the crypto industry did not affect the adoption of stablecoins in Latin America. The use of U.S. dollar-pegged cryptocurrencies is expected to increase further this year, four regional crypto industry leaders said during the first Spanish-language Twitter space hosted by CoinDesk en Español.

“In Latin America, the countries with the highest levels of inflation are the ones that are running the fastest towards cryptocurrencies,” said Mauricio Di Bartolomeo, co-founder of Ledn, a Canada-based lending platform with more than 125,000 users, half of whom are based in Latin American countries. “In 2023, the adoption of stablecoins will increase as inflation will be much higher amid macroeconomic turmoil,” he added.

Late last year, the World Bank said it expected inflation in Latin America in 2022 to close at 14.6%. While the institution anticipates a drop in the rate to 9.5% in 2023, this level remains high. According to a recent report published by JPMorgan, inflation in Latin America will remain above the comfort zones of most central banks this year. The region represents part of the tallest in the world inflation rate.

“We have seen a huge increase in the use of stablecoins, which has increased from 2021 to 2022,” said Daniel Vogel, co-founder and CEO of Bitso, a crypto platform that operates in Latin America with more than six million. of users. He predicted that the use of stablecoins in the region will grow not only as a store of value, but also as a tool for transactions.

In a study entitled “New Payments Index 2022”, Mastercard watch that more than a third of Latin Americans said they made a daily purchase with a stablecoin, compared to just 11% of those responding globally.

“It wasn’t a bad year at all for adoption,” Sebastián Serrano, co-founder and CEO of Ripio, a digital asset platform with over 4.5 million users. “We saw a lot of institutional adoption and a much more stable transaction volume in 2022 than in 2021, a lot of corporate accounts and big projects completed.”

Latin America was the seventh-largest crypto market, according to Chainalysis 2022 Annual Reportand five countries in the region were part of the Top 30 ranking.

Mariano Di Pietrantonio, co-founder and head of strategy at Maker Growth, a team dedicated to expanding MakerDAO, said there is a lot of progress being made in licensing for stablecoin issuance globally.

“I think one of the star products in 2023 will be currency pegged stablecoins from emerging markets such as Latin America and North Africa, because these are very large markets which are precisely the ones that daily use stablecoins without speculative purposes,” he predicted. .

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