Leading cryptocurrency market data firm Kaiko has revealed that cryptocurrency users in Latin America favour stablecoins, particularly Tether’s USDT, over Bitcoin. According to Kaiko’s June Latam market report, 40% of trading volumes in the region involve USDT. This preference is attributed to the instability of local currencies and inflation, despite Bitcoin’s promise of protection against currency debasement.
Kaiko analyzed data from seven exchanges, including Binance, Bitso, and Mercado Bitcoin, finding that stablecoins dominate trading pairs, especially in Brazil. On three of the seven exchanges, stablecoins were the most traded assets, with Bitcoin volumes only surpassing stablecoins on Mercado Bitcoin. Binance, which handles nearly 50% of the region’s cryptocurrency trades, also shows a strong inclination toward stablecoins. Kaiko suggests this trend has influenced central banks to consider central bank digital currencies (CBDCs) as alternatives, though their competitive effectiveness remains uncertain.
