Latin America Drives $562B in Digital Transactions: Circle Report Forecasts Blockchain’s Rise

Bits Logics Team . 12th Dec 2023

• Circle’s report reveals that global stablecoin settlements exceeded a staggering $7 trillion in the past year.
• The Latin America region is experiencing an acceleration in the adoption of blockchain-based financial services, according to the report.
• From mid-2021 to mid-2022, citizens of Latin American countries received an astonishing $562 billion in digital currency value.

In a report released by Circle, a global financial technology company, it has been revealed that the adoption of stablecoins and tokenized data on open blockchains is spearheading a new era of global commerce. Key findings from the report indicate that global stablecoin settlements exceeded a staggering $7 trillion in the past year, surpassing the settlements of industry giants Visa and Mastercard, which totaled $14 trillion.

This signals the rapid maturation of blockchain infrastructure, showcasing its capability to handle a substantial volume of economic activity within Latin America and on a global scale.

The report emphasizes the transformative impact of blockchain-based financial services, highlighting their ability to address real-world problems in ways that traditional finance cannot match.

With advancements in software development simplifying the integration of blockchain services, millions of businesses and billions of individuals are expected to turn to these regulated, blockchain-based financial services, competing directly with traditional financial institutions across savings, payments, credit, and more.

Latin America is positioned at the forefront of this global financial revolution, with Circle’s article suggesting that the region is experiencing an acceleration in the adoption of blockchain-based financial services. From mid-2021 to mid-2022, citizens of Latin American countries received an astonishing $562 billion in digital currency value. Mastercard reports that 51% of Latin American consumers have made purchases using digital currency, and one-third have utilized stablecoins for everyday transactions.

The driving force behind this explosive growth is the simple yet powerful value proposition of expanded access. Worldwide, an estimated 1.7 billion people are underbanked, despite two-thirds of them owning smartphones. 

Similar to how the original internet democratized access to information, public blockchains are now transforming internet-connected devices into compliant endpoints for both traditional finance and innovative financial services. This paradigm shift is disrupting traditional processes and bureaucratic structures, offering financial inclusion to those who were previously excluded.

As blockchain technology continues to evolve and mature, the report suggests that the coming years will witness a significant surge in the adoption of blockchain-based financial services globally, with Latin America leading the way in this transformative journey. The region’s role in shaping the future of finance is solidified as millions embrace these innovative solutions, marking a seismic shift away from traditional financial models.