Stablecoins to Boost Financial Inclusion, Remittance Access

Remittance flows to Latin America reached US$161 billion in 2024, accounting for 17% of the global total. The adoption of stablecoins is addressing inefficiencies in payment infrastructure, offering faster, cheaper, and more transparent alternatives to traditional systems, according to Zach Garman, Co-founder, DolarApp.

Recent PCMI data indicates that the global stablecoin market capitalization hit US$168 billion in 2024, facilitating nearly US$7 trillion in transactions in 2023. Similarly, Worldpay processed over US$1.3 billion in stablecoin payments by September 2024, a 30% increase from 2023. Adoption has surged, particularly in Mexico, according to Finnovista.

“A few years ago, cryptocurrency transactions in Mexico were mainly speculative. Today, they are increasingly used for remittances and commercial payments,” said Jaime Márquez Poo, STP.

Traditional cross-border payments rely on networks of correspondent banks, introducing delays, high fees, and limited transparency. Bank fees for international B2B payments range from 1.5% to 2.9%, while remittance costs in Latin America and the Caribbean exceed 6%, making the region among the most expensive globally for remittances. Settlement times average two to five business days, often with tracking challenges due to multiple intermediaries.

Stablecoins offer near-instant settlement, reduced costs through minimal blockchain fees, and real-time transparency enabled by blockchain’s auditable nature, according to Bitso. These benefits are particularly valuable in Latin America, where 42% of the population lacks access to traditional banking, per the World Bank.

“With just a smartphone and internet connection, underbanked individuals can securely send and receive payments using stablecoins,” said Federico Javin, Global Head of Sales, Conduit Pay.

“Stablecoins transform how value moves globally,” added Paul Bances, VP of Digital Currencies + Xoom Remittance, PayPal. Blockchain’s cost-effectiveness, speed, and 24/7 availability make it a game changer.

“Every blockchain transaction is transparent, building trust in cross-border and high-volume transactions,” Javin emphasized.

“Though Latin America comprises just 5% of the world’s population, it receives 17% of global remittances,” said Ximena Aleman, Co-CEO, Prometeo, in an interview with MBN. Mexico is the region’s largest remittance recipient, capturing 41% of inflows in 2023, per Finnovista’s Fintech Radar.

Stablecoins are increasingly used for cross-border B2B transactions, payments to freelancers, and international trade settlements. In Argentina and Colombia, for instance, contractors use stablecoins to bypass high intermediary fees when receiving payments from foreign clients.

The cross-border B2B payments market in Latin America is expected to grow from US$600 billion in transaction volume to approximately US$1.37 trillion by 2030, with revenue estimates ranging from US$25 billion to US$133 billion and a CAGR of 11%.

More than 130 countries are exploring central bank digital currencies (CBDCs). Financial institutions like Visa, Citi, and J.P. Morgan are investing in blockchain and stablecoin integrations.