Stablecoin adoption in Latin America is increasing as more users turn to Circle's USDC and Tether's USDT

The USDC (USDC) and USDt (USDT) stablecoins have become a “store of value” in Latin America, accounting for 39% of total purchases on Bitso

Stablecoin adoption in Latin America is increasing as more users turn to Circle’s USDC and Tether’s USDT for financial stability, according to a new report from cryptocurrency exchange Bitso.

The USDC (USDC) and USDt (USDT) stablecoins have become a “store of value” in Latin America, accounting for 39% of total purchases on Bitso in 2024, the firm said in its third edition of the Latin America Crypto Landscape report issued on March 12.

The report highlighted a significant increase in stablecoin adoption on the platform, with total stablecoin purchases surging 9% from 2023.

“In Latin America, challenging macroeconomic conditions, characterized by high inflation and currency devaluations, drove increased cryptocurrency adoption — particularly stablecoins — as a reliable store of value,” Bitso stated in the report.

USDC leads the race, Bitcoin follows

While stablecoin purchases soared, Bitcoin (BTC) saw a notable decline in trading volume on Bitso in 2024, with its share dropping to 22% from 38% in the second half of 2023.

According to Bitso, the decrease in BTC purchases in Latin America indicates the growing trend of the hodl strategy, which implies buying and holding the cryptocurrency to profit from its long-term price appreciation.

The drop in BTC purchases aligned with the bull market of 2024, which saw Bitcoin rally past $100,000 for the first time in December.

Top 10 purchased crypto assets on Bitso by share in 2024. Source: Bitso

As Bitso users held off on Bitcoin purchases in 2024, buying activity switched to stablecoins, with USDC leading the way at 24%.

USDT purchases accounted for 15% of total cryptocurrencies acquired on Bitso in 2024.

Argentina is the top USDt market with a 50% share

A more detailed analysis of geographical preferences among Latin American countries displayed a massive trend for USDT use in Argentina, which is recognized for its high stablecoin adoption due to inflation rates exceeding 100%.

According to the report, Bitso users in Argentina mostly favored purchases of USDT and USDC in 2024, contributing to 50% and 22% of all cryptocurrency purchases in the country, respectively.

Top 10 purchased crypto assets on Bitso in Argentina, Brazil, Colombia and Mexico. Source: Bitso

On the other hand, the share of Bitcoin purchases in Argentina accounted for only 8% of cryptocurrency purchases last year on Bitso, the lowest share compared to other analyzed countries.

Brazilian and Mexican Bitso users still preferred Bitcoin as the most purchased cryptocurrency last year, with BTC buying percentages reaching 22% and 25%, respectively.