Latin America Stablecoin Debate Centers On Where Dollar Reserves Should Sit

Latin America’s stablecoin debate is shifting from issuer rules to where the dollars backing tokens should be held, with offshore reserves increasingly seen as a domestic policy issue. According to BeInCrypto, the region’s regulators are weighing whether to keep stablecoin liquidity in local banks or leave it offshore, as Argentina, Brazil and Mexico move on different frameworks. Brazil’s institutional stablecoin volume rose from 5% of local crypto flows in 2024 to 84% in 2025, while Mexico’s Senate is debating a bill on peso-pegged stablecoins.