According to reports from Chainalysis and Austrac, cryptocurrency Rails for remittances is booming in Latam. This use case, which previously struggled to gain momentum, is currently experiencing significant growth, with volumes increasing by over 40% in 2024, with more potential for further growth as stubcoin becomes mainstream.
Cryptocurrency transfers increase by 40% in Ratum, where there is room for growth
Latin America is once again at the forefront of the adoption of cryptography. According to recent reports from cryptocurrency and blockchain intelligence company Chainalysis, and Austrac, Australia’s Transaction Report and Analytics Centre, cryptocurrency use to send remittances to LATAM has risen by nearly 40%.
The report says Crypto ATMs could cut back on intermediaries and send money with physical interactions, allowing savvy users to send money, which could lead to an even greater increase in adoption. The reason for this is the increase in adoption of stubcoins, now officially supported by the White House crypto strategy, to provide a way to “promote and protect US dollar sovereignty.”
In this context, the value of stablecoins against the struggles of the LATAM economy is clear. This is because it helps citizens save purchasing power in markets where access to physical dollars is not guaranteed, or simply because of capital management constraints.
There are over 38,000 Crypto ATMs worldwide, with over 30,000 ATMs in the US. According to Coin ATM Radar, Mexico, Puerto Rico, Panama, Panama, Colombia and Argentina register the most crypto ATMs in the region without including El Salvador, which registers 200 locations.
Nevertheless, El Salvador has seen a decline in the amount of remittances, according to the central bank’s official numbers. However, this could be affected by the Chivo wallet reeling process, state-sponsored wallets, and the ongoing “confinement” of the country’s Bitcoin operations from the public sector.
Even in the face of government opposition like Brazil, proposals are being debated to ban standard withdrawals to independent wallets, so remittances using these are poised to continue growing as they have advantages over standard remittances.
Read more: Crypto transfers fell nearly 45% in El Salvador