Brazil and Argentina are rapidly expanding their use of stablecoins, signaling that Latin America's two largest economies are embracing blockchain-based payments despite ongoing regulatory uncertainty and warnings from the International Monetary Fund (IMF).
The growing momentum became evident this week after the IMF reported that cryptocurrency networks-primarily stablecoins-now process the majority of Brazil's cross-border transfers. At nearly the same time, reports emerged that major Argentine banking groups are developing peso-backed stablecoins despite an existing restriction on banks offering crypto services directly.
The developments highlight how digital assets are becoming increasingly integrated into South America's financial system as businesses seek faster and lower-cost alternatives to traditional payment networks.
Stablecoins Dominate Brazil's Cross-Border Transfers
The IMF's latest Financial System Stability Assessment of Brazil found that stablecoins have become the country's primary method for cross-border money transfers. According to the report, digital asset usage has steadily increased since 2017, eventually surpassing traditional financial channels.
The IMF attributed much of the growth to lower transaction costs, faster settlements, and tax-related advantages, making stablecoins attractive to both businesses and retail users.
However, the organization also warned that Brazil's regulatory framework still contains important weaknesses. The report highlighted several areas requiring improvement, including:
- Legal protections for consumers
- Rules governing custodial assets
- Travel Rule compliance
- Anti-money laundering and transaction tracing standards
The IMF also observed that stablecoin demand increasingly moves alongside Bitcoin prices, financial market volatility, exchange rates, interest rates, and tax policy, suggesting digital assets have become closely linked with Brazil's broader economy.
Brazil's Congress is currently debating Bill 4308/2024, legislation designed to establish a clearer legal framework for stablecoins while determining how they should be classified under Brazilian law.
Argentine Banks Develop Peso Stablecoins
Argentina's financial sector is also moving deeper into digital assets. According to local reports, two major banking groups are developing peso-pegged stablecoins aimed primarily at institutional clients.
One of the projects is being developed by BIND Group, which manages more than $2 billion in assets through BIND Banco Industrial. The stablecoin is being built via the group's digital asset subsidiary BEN, following its recently announced partnership with Circle to expand blockchain-based financial services.
Meanwhile, The Petersen Group, owner of several regional banks, is developing its own stablecoin project known as DIPE with support from Lirium, a crypto-as-a-service provider.
The tokens are expected to support treasury operations, automated blockchain payments, and collateralized lending, rather than serving everyday retail payments.
Regulatory Uncertainty Remains
Despite the growing institutional interest, Argentina's regulatory environment remains uncertain. Since May 2022, the country's central bank has prohibited private banks from directly offering cryptocurrency services.
To comply with current rules, both banking groups are developing their projects through separate subsidiaries rather than their licensed banking entities.
At the same time, reports suggest the central bank is considering lifting the restriction, although no formal decision has been announced. The regulatory picture remains complicated after Argentina's securities regulator recently blocked the argt peso stablecoin, arguing it had been offered without meeting the country's securities requirements.
The broader trend reflects growing demand for locally issued stablecoins across Latin America. According to The Digital Chamber, stablecoin transaction volume in the region reached $324 billion in 2025, an 89% increase year over year. Stablecoins accounted for more than 90% of crypto transaction volume in Brazil and over 60% in Argentina, while 71% of financial institutions in Latin America reported using stablecoins for cross-border payments-the highest adoption rate of any region worldwide.
