The analyst firm reported that the use of dollar-pegged stablecoins is on the rise in Latin America, especially in countries with high inflation and devaluation.
Chainalysis analysts claim that in Venezuela and Argentina, small transactions (less than $1,000) are 34% and 31%, respectively, of stablecoins. Sebastian Serrano, CEO of Argentinean cryptocurrency exchange Ripio, believes that stablecoins are popular because they offer digital hedging in dollars:
“Argentines use cryptocurrency for security. That’s why there are so many use cases for stablecoins: it’s a secure digital alternative to holding a fiat dollar.”
While Venezuelans have already gotten rid of foreign exchange controls, Argentines are still under restrictions on buying dollars. In addition, there are different exchange rates in Argentina for different uses of the dollar. Recently the government introduced two new exchange rates called Qatar and Coldplay. All of this makes the stablecoin offering even more interesting by allowing citizens to bypass currency controls.
It’s not just people in Argentina and Venezuela who rely on stablecoins to protect their savings. Brazil, a country with one of the largest economies on the continent, also has a high level of use of stablecoins. USDT and USDC are among the top five cryptocurrencies used to move assets in large volumes, according to data released by the Brazilian Tax Authority in August. For example, the Tether coin was used to move 1.4 billion in 79,836 transactions with an average amount of almost $18,000.
Chainalysis recently reported that from July 2021 to June 2022, the countries of the Middle East and North Africa became the leaders in the growth of adoption of cryptocurrencies in various spheres of life.
Source: Bits

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