Use Of Remittances Boosts Cryptocurrencies In Latin America

Latin America has become one of the regions with the greatest potential for the growth of cryptocurrency use. In particular, stablecoins like USDT, Bitcoin, and Ethereum lead its daily use, whether for investing, saving, or sending money. However, one of the major challenges to achieving broader adoption remains the low financial inclusion in many countries, where cash continues to dominate.

Persistent inflation in places like Argentina and Venezuela, along with recent tariff policies driven by Donald Trump that have hindered regional trade, have created fertile ground for crypto growth. But beyond these factors, there is a flow that continues to make a difference in millions of households: remittances.

The power of remittances in Latin America

According to BBVA Research data, in 2024 remittances sent to Latin America and the Caribbean represented 2.3% of the regional Gross Domestic Product (GDP), reaching 160.9 billion dollars. In countries such as El Salvador, Guatemala, Nicaragua, and Honduras, that percentage reaches up to 26%, making remittances one of the most important economic pillars, even surpassing sectors like tourism or agriculture.

For many families, remittances are not just extra income: they are the foundation for covering basic needs and a direct link between those who emigrate and those who stay. In many cases, they represent the only stable income.

More than money crossing borders, remittances are an economic infrastructure in motion. And it is precisely in that movement where cryptocurrencies, especially stablecoins, can make a difference. They allow reducing costs, accelerating transfers, and facilitating access to financial services in areas where cash dominates.

Remittances today: an expensive and slow system that urgently needs transformation

Although millions of people depend on them, the traditional remittance sending system remains slow, costly, and inefficient. Sending money can cost up to 65 dollars in fees and take from 6 to 48 hours, depending on the method used. For those sending small amounts, these costs are too high.

In addition, many recipients still have to go to physical points to withdraw and face complications such as lack of infrastructure in rural communities. The predominant use of cash limits the possibility of remittances having a real impact on local economic development.

In contrast, cryptocurrencies allow sending money almost immediately, securely, and with minimal fees. Today there are already platforms that allow transfers from 1 dollar without banking intermediaries or queues at branches.

Companies like Bitso, Strike, Koibanx, and Coinbase already successfully operate in the region, offering 100% digital experiences. These solutions not only represent a saving of time and money, they are also the gateway to a more accessible and decentralized financial system.

Four strategic flows between countries in Latin America

In the region, there are certain relevant money flows, driven by different economic, social, and migratory conditions. These cases show where cryptocurrencies can have a real and immediate impact.

Mexico: epicenter of remittances and crypto adoption

Mexico is the second country that receives the most remittances worldwide, after India. According to the Bank of Mexico, it exceeded 64 billion dollars in 2024 and it is expected that the figure will continue to grow. This volume reflects both the magnitude of migration and the country’s potential to implement innovative solutions like crypto remittances.

Platforms like Bitso, which managed more than 10% of remittances between the U.S. and Mexico, and Binance are already used to send money with stablecoins like USDC. This significantly reduces costs and times.

Also, the high penetration of smartphones –more than 81%– facilitates access to these digital solutions without relying on remittance agents or banks.

Mexico towards Central America, a growing flow

Another important flow is from Mexico to Guatemala, Honduras, and El Salvador. In recent years, thousands of migrants have arrived with the intention of crossing into the United States, but many end up staying in Mexico, generating a new regional remittance pattern.

El Salvador, moreover, has become a global experiment by legalizing Bitcoin. Although the results have been mixed, the country remains a key laboratory to understand the use of cryptocurrencies in remittances.

Argentina and Venezuela: crypto adoption driven by the economy

In Argentina and Venezuela, cryptocurrencies are used both for remittances and for managing everyday money. Facing unstable local currencies, many people prefer to use USDT, DAI, or Bitcoin to save, collect salaries, and make payments.

In Argentina, which had an annual inflation rate over 200% in 2024, crypto use soared. The government even announced it will start regulating wallets from July 2025.

In Venezuela, the collapse of the bolivar led thousands to adopt crypto as a daily solution. Many people receive payments in digital dollars from foreign companies for daily use and payroll. Platforms like Binance, peer-to-peer networks, and Telegram bots enable a more functional and stable economy.

According to The State of LATAM Crypto Markets report by Kaiko, the trading volume in Argentine pesos grew more than 400% in 2024, driven by inflation and devaluation. Similarly, in Venezuela, stablecoins already represent a considerable part of retail transactions.

Why remittances are key for the financial transformation of Latin America

Remittances are not just money transfers; they are a real economic foundation for millions of families in the region. When combined with crypto solutions, they can completely transform how money moves in Latin America.

The use of stablecoins and blockchain platforms can reduce costs, accelerate transfers, and generate new opportunities in communities that today lack access to financial services. But for this potential to be realized, a collective effort is needed: smart regulation by governments, user-centered solutions by companies, and openness from communities to new ways of operating.