🌎 Holiday Weekly Recap 🎄

👋 Hi welcome to Frontera, the newsletter dedicated to showcasing the reality of crypto in Latam. Join industry leaders from Binance, Crypto.com, dYdX and others to understand how Latin America has become one of the most dynamic and promising markets in the crypto world and how you can address this market. 

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If you want to build products, invest, or grow in LATAM, this is your place. 

Btw, this is our last newsletter of the year 🎉 Thank you for joining this newsletter and reading us every week:)

2025 will be the year of Frontera, so expect new and fresh updates on how crypto evolves in Latin America in all formats: podcast, newsletter, reports and more.

Have a prosperous new year!

- Frontera Team (Rivv, Ab, Cush, Santi, Acid, Alan, Delarg0 & Lalo)🧡

Btw, you can listen the full episode here.

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📈 Stablecoins in Latin America: Growth and Outlook for 2025

Digital remittances in Latin America and the Caribbean (LAC) are experiencing rapid growth, with a 23% annual increase, according to a PCMI report. 

Bitso Business, which managed more than 10% of the total transfer volume between the US and Mexico in 2024, highlights stablecoins as a promising alternative for cross-border payments. In 2024, transactions conducted by Bitso Business surpassed $6.5 billion, a notable increase from $4.3 billion in 2023.

Stablecoins offer significant advantages over traditional currencies: they enable instant transactions, are available 24/7, and eliminate intermediaries, which reduces costs and delays. 

According to the PCMI report, the global cross-border payments market is expected to grow from its current value of $44 trillion to $65 trillion by 2030, with Latin America and the Caribbean standing out as one of the fastest-growing regions.

In the last year, Latin America saw a 42.5% growth in crypto activity, with Brazil, Venezuela, Mexico, and Argentina among the top 20 countries for crypto adoption. Stablecoins helped this growth in the region, especially in Argentina (61.8% of transaction volume) and Brazil (59.8%). This growth is driven by the region's interest in stablecoins, which offer financial stability in volatile economies and more effective sending of remittances.

Despite the advantages offered by stablecoins, cross-border payments in Latin America still face challenges stemming from the traditional banking system, especially high fees and delays associated with the use of the SWIFT system.

By 2025, it is certain that the use of stablecoins in Latin America will expand significantly. The growing adoption of blockchain and the increasing interest in decentralized solutions in the region could drive the use of stablecoins, especially in sectors like remittances and B2B cross-border payments.

As businesses and consumers recognize the benefits of stablecoins, such as cost reduction and transaction speed, their integration into the local economy could become more common over time.

Regulatory progress in the region will also play a crucial role in this process, providing greater confidence and security in their use. So far, the three countries that have made the most progress in providing regulatory clarity have been Brazil, El Salvador, and Argentina. It remains to be seen which other countries will begin to adjust their regulations for these types of assets by 2025.

Read the full Bitso and PCMI report here.

🇧🇷 Brazil

🇧🇷 Crypto holders must report all assets

Starting December 23, Brazilian taxpayers must declare all crypto holdings, including utility tokens, under new tax rules. 

Over 144,000 refunds will also be issued this month. Brazilians who have declared crypto assets and paid personal income tax have the option to check if they will receive a tax refund due to discrepancies in their tax returns, as the valuation of crypto assets has become more complex.

🇸🇻 El Salvador

🇸🇻 El Salvador buys $1 million USD in Bitcoin amid market drop
El Salvador adds 11 BTC to its reserves during a market downturn, which brings their total BTC holdings to 5,980.77 BTC ($565.6M), while securing a $1.4B loan deal with the IMF for economic stability.

The agreement will limit public use of Bitcoin, make its acceptance voluntary in the private sector, and gradually reduce state involvement in the Chivo wallet while improving regulation and transparency.

🇸🇻 Bitget obtains key crypto license

Bitget gains regulatory approval in El Salvador to offer Bitcoin-to-fiat exchanges, payments, and secure custody, strengthening its role in crypto adoption across Latin America.

El Salvador, with its pioneering Bitcoin adoption, serves as a gateway for Bitget’s regional expansion. By addressing key needs such as remittances and fiat volatility, Bitget leverages the region’s immense crypto potential.

Bitget also plans to establish a local team in El Salvador and pursue broader licensing to deliver innovative, secure services across Latin America.

🇲🇽 Mexico

🇲🇽 Bitso manages 10%+ of US-Mexico remittances

Bitso handled over $6.5B in remittances in 2024, leveraging stablecoins for cross-border payments. Latin America leads remittance growth, doubling flows in a decade to $156B.

🇦🇷 Argentina

🇦🇷 The Argentine Fintech Chamber warns about the impact of tax increases on payment platforms

The Santa Fe tax proposal to raise the IIBB (Gross Income Tax) rate to 9% could hurt fintechs, increase costs, and risk financial inclusion, says the Argentine Fintech Chamber.

🇦🇷 Cyber patrols expand to prevent crypto scams
New measures target unauthorized financial mediation with cryptocurrencies. Efforts focus on public platforms, ensuring privacy and free speech protections.

🇧🇴 Bolivia

🇧🇴 Crypto exchange registration requirement suspended
The Financial Investigations Unit halts mandatory registration for crypto exchanges and users. Cryptocurrencies remain operational without restrictions in Bolivia.

🇨🇴 Colombia

🇨🇴 BlackRock launches Bitcoin ETF

BlackRock debuts its iShares Bitcoin Trust (IBIT) on Colombia’s stock exchange, offering a secure way for investors to access Bitcoin without directly holding the cryptocurrency.

The debut of BlackRock's Bitcoin ETF in Colombia is key due to its partnership with Trii and Acciones & Valores, providing secure access to crypto, managed by the world's largest broker. Trii facilitates digital investment, and Acciones & Valores brings expertise in financial management.

🇪🇨 Ecuador

🇪🇨 “Anti-Crime Law” targets crypto laundering
President Noboa enacts a law requiring crypto providers to report suspicious activities, aiming to combat money laundering without limiting cryptocurrency use.

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