"Ditch the US"...Stablecoin's Latin America Strategy Changes

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An analysis suggests that a strategy moving away from the US-centric payment structure is necessary to seize opportunities for stablecoin proliferation in Latin America.

Cointelegraph reported on May 4 (local time) the contents of a report stating that stablecoin companies should focus on non-US payment channels rather than those directly connected to the US when targeting the Latin American market.

According to the report, the demand for stablecoins in Latin America stems from cross-border remittances and issues with dollar accessibility. It explains that stablecoins are becoming a practical payment alternative, especially as currency value instability and a lack of financial infrastructure combine in some countries.

However, it was pointed out that existing payment routes through the US financial system are inefficient in terms of regulatory burden and cost structure. Therefore, companies emphasized that strategies utilizing non-US payment networks or regional channels could offer greater growth opportunities.

The report presented person-to-person remittances and business-to-business payments as key use cases for stablecoins. It analyzed that faster processing speeds and lower fees compared to traditional financial systems are acting as core competitive advantages.

Furthermore, it was noted that building local partnerships and understanding the regulatory environment are essential for stablecoin companies to succeed in the Latin American market. It was also emphasized that region-specific strategies are required beyond mere technology provision.

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