According to CryptoPotato, global settlement volume of stablecoins reached $7 trillion in 2021, nearly half the $14 trillion settled by financial giants Visa and Mastercard. This highlights a shift towards digital currencies, particularly in Latin America, where they have become part of everyday transactions.
The rise of stablecoins is creating a new wave of financial interoperability and easier global commerce. Latin America is at the forefront of this revolution with its rapid adoption and integration of digital currencies into everyday financial activities. A Mastercard survey revealed that 51% of consumers in the region have used digital currencies for purchases, with one-third relying on stablecoins for routine shopping. This widespread adoption is driven by a large population with limited access to conventional banking services and a significant developer base in the region.
Circle, a leader in the stablecoin market, has played a crucial role in this shift. Since launching USDC, a dollar digital currency, in 2018, Circle has seen its adoption skyrocket, emphasizing the potential and growing acceptance of stablecoins in the financial sector. Latin America's fintech sector is rapidly integrating USDC with key players in the region to enhance its financial services. Mercado Libre, the region's largest e-commerce platform, now offers digital dollars through USDC, valued for its transparency and interoperability. Airtm has collaborated with the Venezuelan government and the U.S. to use USDC to bypass political barriers, demonstrating the currency's potential in humanitarian aid. Argentinian fintech Lemon enables nearly two million customers to access and transact with USDC and local currencies seamlessly. Ripio, at the forefront of crypto adoption in the region, has introduced USDC cashback on its cards, further normalizing digital currency in everyday transactions. Credix is transforming the credit market by linking investors with unique opportunities in Latin America, leveraging USDC for streamlined transactions. Littio, a Colombian savings and payments app, incorporates USDC and Euro Coin, offering diverse savings options. Parfin caters to Brazil's major financial institutions with various digital asset services, underlining the growing institutional interest in digital currencies. Felix Pago's innovative remittance platform enables transfers from the U.S. to Mexico via WhatsApp, powered by USDC in partnership with Mercado Libre, enhancing cross-border transactions.
