Cryptocurrency Remittances Spike 40% in Latin America

According to a report by Chainalysis and AUSTRAC, cryptocurrency rails for remittances are 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 and the potential for further growth as stablecoins go mainstream.

Cryptocurrency Remittances Grow 40% in Latam With Room for Growth

Latin America, once again, is at the forefront of crypto adoption. According to a recent report by Chainalysis, a cryptocurrency and blockchain intelligence firm, and AUSTRAC, the Australian Transaction Reports and Analysis Centre, the use of cryptocurrency to send remittances to Latam has grown close to 40%.

The report states that crypto ATMs, which cut the middlemen and allow less savvy users to send money with physical interaction, have the possibility of growing adoption even more. The reason lies in the increased adoption of stablecoins, which are now officially supported in the crypto strategy of the White House, as they provide a method for “promoting and protecting the sovereignty of the United States dollar.”

In this context, the value of stablecoins for struggling Latam economies is clear, as it provides a dollar proxy that helps citizens in conserving their purchasing power in markets where access to physical dollars is not guaranteed, or simply out of the question due to capital control constraints.

There are over 38,000 crypto ATM’s worldwide, with the U.S. reaching over 30,000 ATM. Mexico, Puerto Rico, Panama, Colombia, and Argentina register the highest numbers of crypto ATM’s in the region, without including El Salvador, which registers over 200 locations, according to Coin ATM Radar.

Nonetheless, El Salvador is experiencing a reduction in the volumes of remittances, per central bank official numbers. However, this might be influenced by the winding-down processes of Chivo Wallet, the state-sponsored wallet, and the ongoing “confinement” of the country’s bitcoin operations away from the public sector.

Even facing government opposition, like in Brazil, where a proposal to ban stablecoin withdrawals to self-custody wallets is being discussed, remittances using these are poised to keep growing due to the advantages they present over standard remittances.

Read more: Crypto Remittances Fell Nearly 45% in El Salvador