By Michael Scott
The prolonged crypto winter is hardly deterring stablecoin adoption in Latin America. The uptake of stablecoin revealed no signs of slowing despite the global turmoil in 2022 plunging crypto firms into a financial crisis.
Crypto industry leaders are projecting the utilization of cryptos pegged to the US dollar to sustain the uptrend in their use across the Latin American world.
Latin America Tops in Stablecoins Uptake
In their address during the Spanish-language Twitter Space, the digital assets leaders unanimously observed that the Latin America region is set to lead other jurisdictions in stablecoin uptake.
Ledn co-founder Mauricio Di Bartolomeo admitted that Latin America’s skyrocketing inflation levels would fuel the run toward crypto adoption. Bartolomeo confessed that Ledn, the Canadian-based lender, has over half its 125000 users from Latin American countries. He anticipated a hike in the stablecoin uptake in 2023 as countries in the region experiences macroeconomic turbulence and rising inflation.
Elevated Inflation Levels Fueling Stablecoins Usage in Latin America
The World Bank projected the 2022 inflation rates to average 14.6% in Latin America. Its subsequent forecast of 2023 indicated the inflation rate would reduce to 9.5%, though still exhibiting an elevated level. The report received backing in recent findings published by JPMorgan that Latin American inflation rates would rest above the comfort zones of other central banks. The bank’s report regretted that the Latin America region could exhibit higher inflation rates in 2023.
Bitso chief executive Daniel Vogel admitted witnessing increased usage of stablecoins between 2021 and 2022. The crypto firm co-founder admitted that the number of firm users in the region exceeded 6 million. Vogel added that stablecoins utilization would increase to execute transactions and store value.
A Mastercard study identified as New Payments Index 2022 revealed that over a third of Latin Americans admitted purchasing stablecoin daily. The figure was higher than the worldwide level of 11%, making stablecoins acquisitions.
Increased Institutional Involvement in Stablecoin Purchase
Ripio’s chief executive and co-founder, Sebastián Serrano, indicated that the crypto adoption was remarkable in 2022. He added that the crypto platform user base exceeded 4.5 million. Notably, Serrano illustrated that Ripio witnessed increased institutional adoption. Also, the stablecoin trading volume recorded in 2022 exceeded the 2021 performance. Last year’s performance featured multiple corporate accounts and the completion of huge projects.
The assessment of global crypto market performance by Chainalysis indicated that Latin America ranked seventh, with the region’s five countries occupying the top 30 slots.
Maker Growth co-founder Mariano Di Pietrantonio, involved in expanding MakerDAO, lauded the progress realized worldwide to approve stablecoins issuance. He projected that stablecoins would portray a star performance in 2023. Pietrantonio indicated that North Africa and Latin America would realize increased stablecoins purchase though not for speculative purposes.