Markets· August 17, 2026 at 10:05 a.m.
Latin Americans Shift to Digital Dollars: Assessing Safety and Risks
Key takeaways
- Latin America is experiencing bottom-up dollarization
- 99% of tracked stablecoin withdrawal volume moved onward within 30 days
- Bitso's stablecoin corridor was running at an annualized $31.5 billion in 2026
A new report, The Exodus Economy by BeInCrypto Intelligence, reveals a significant shift in Latin America towards digital dollars. This bottom-up dollarization sees individuals and businesses using stablecoins for salaries, revenue collection, and foreign supplier payments. However, the protection behind these digital balances varies widely.
The report found that more than 99% of tracked stablecoin withdrawal volume moved onward within 30 days. On Argentine wallet Lemon, the median withdrawal ranged from $150 to $270 during the first half of 2026, with an average of $544 across 215,597 transfers.
Bitso's tracked stablecoin corridor was running at an annualized $31.5 billion in 2026. This figure represents gross, bidirectional movement rather than money permanently leaving the region.
Antônia Souza, Visa's digital-currency director for Latin America and the Caribbean, stated that institutions account for the largest flows. However, BeInCrypto's audit of 12 dollar-account products available to Latin American customers found that only two placed customer balances in insured US bank deposits.
Reza Bundy, CEO of Atlas Capital Team, emphasized the need for savers to separate currency protection from wealth preservation. He warned about the risks associated with stablecoins, long-duration Treasuries, cap-weighted US technology indices, and shorter-duration bonds and assets that respond differently to inflation.
The shift towards digital dollars provides Latin Americans with access to a more stable currency. However, the safety, liquidity, and purchasing power of these funds depend on the specific product held.
