A new report by IOV Labs has detailed the growth of stablecoins across Latin America, with more than a third of consumers embracing them for everyday purchases.
This figure exceeds the global average, which is reportedly around 11%, underlining the significant potential of stablecoins in the LatAm region.
The report is titled Taming Inflation: How DeFi is Reshaping Finance in Hyperinflationary Countries, and highlights the ability of DeFi-based products to provide an alternative to traditional financial solutions in parts of the world suffering from hyperinflation.
The timely report comes on the back of a year dominated by news about inflation, and in direct response to escalating rates of hyperinflation in nations across Latin America, such as Argentina.
Furthermore, it also outlined the role that DeFi can have when it comes to limiting hyperinflation in countries. It emphasised that DeFi and blockchain is being prioritised by G20 leaders to address problems posed by the current financial infrastructure, including boosting stablecoin and digital asset use to create interoperable, efficient, affordable, and accessible financial systems.
Speaking on the new report, Toby Box, Head of Financial Services & User Services, commented: “Our new report underlines the role that blockchain technologies and stablecoins can play in helping people to safeguard their savings and navigate the challenges of hyperinflation.
“If you live in a challenging inflationary environment you might seek comfort in the US Dollar. As digital assets gain traction, they are quickly becoming useful for people who need to move value into US Dollars.”
Furthermore, it emphasised that blockchain technologies are reportedly set to save financial institutions USD $10 billion in reduced cross-border transaction costs by 2030.
Daniel Fogg, CEO of IOV Labs, added on the report: “Today, the Rootstock blockchain is maintained, upgraded, and supported by hundreds of committed engineers and builders around the world. For many of them, getting access to US Dollars, protecting assets from inflation, and securing savings from bad actors is not an abstract philosophical problem, it is an everyday reality.”