Latin America’s stablecoin debate differs fundamentally from Washington’s: it is not about defining who can issue a dollar-pegged token, but about where reserve dollars should be held. In Brazil, institutional stablecoin volume jumped from 5% of local crypto flows in 2024 to 84% in 2025, while Mexico’s Senate is debating a bill on peso-pegged stablecoins. Kenya proposed in July requiring 30% of stablecoin issuer funds to be held in local banks, an approach many consider even more urgent in Argentina or Venezuela, where dollar scarcity is a structural problem. The author warns that mandating local reserves would fragment current liquidity, weaken the convertibility useful for remittances, and risk pushing demand toward unregulated rails instead.
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