Mexico’s central financial institution warned in a brand new monetary stability report that “stablecoins pose vital potential dangers to monetary stability,” citing their speedy development, hyperlinks to conventional finance and international regulatory gaps that might gas arbitrage and amplify market stress.
Stablecoins’ heavy reliance on short-term US Treasurys, market focus with two issuers controlling 86% of the availability and previous depegging episodes with stablecoins underscore how susceptible the sector stays to emphasize, in response to the Banxico report.
With out coordinated worldwide safeguards, mass redemptions or issuer failures might spill into broader funding markets, the central financial institution warned.
Banxico additionally highlighted diverging regulatory approaches as a rising supply of threat, noting that frameworks just like the EU’s MiCA and the US GENIUS Act impose completely different reserve, redemption and depositor-protection necessities, creating regulatory gaps that might incentivize arbitrage throughout jurisdictions.
Banxico acknowledged that stablecoins can enhance settlement effectivity, scale back switch prices and assist remittances and liquidity in decentralized finance. Nevertheless, it plans to maintain a cautious distance between the standard monetary system and digital property, citing their potential to trigger stress in broader markets.
Crypto adoption in Mexico is comparatively low. In line with Chainalysis’ World Crypto Adoption Index, the nation fell to twenty third place in 2025 from 14th place in 2024 within the adoption rating.
The central financial institution’s warning displays Mexico’s broader cautious stance on crypto. Regardless of the rise of exchanges like Bitso, the nation has not launched vital new digital-asset laws and nonetheless depends on its 2018 Fintech Legislation as the first regulatory framework.
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Brazil and Argentina lead Latin America in crypto adoption
Whereas Mexico’s central financial institution maintains a cautious stance on digital property, different Latin American international locations have embraced adoption.
Chainalysis’ 2025 Geography of Crypto Report reveals that Latin America generated almost $1.5 trillion in crypto transaction quantity from July 2022 to June 2025, with month-to-month exercise growing to nearly $88 billion by December 2024 from $20.8 billion in mid-2022. A number of months in late 2024 and early 2025 constantly exceeded $60 billion.
In line with the report, Brazil led Latin America by a large margin, receiving $318.8 billion in crypto worth from July 2022 to June 2025, almost one-third of all exercise within the area, whereas Argentina ranked second with $93.9 billion in transaction quantity.
The central banks of the 2 main international locations are additionally taking a extra proactive stance in regulating digital property.
In November, Brazil’s central financial institution finalized guidelines that place crypto firms below banking-style supervision, together with treating stablecoin transactions and sure self-custody pockets transfers as international alternate operations.
In Argentina, a rustic that has suffered from hovering inflation, the central financial institution is reportedly weighing whether or not to permit conventional monetary establishments to commerce cryptocurrencies in a possible reversal of its 2022 ban, in response to a report from La Nación on Friday.
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