Mexico's central bank has issued a new financial stability report warning that stablecoins may pose significant risks to the financial system due to rapid growth, traditional-finance exposure and inconsistent global regulation.
The report highlights stablecoins’ dependence on short-term US Treasuries and the high market concentration in which two issuers control 86% of supply, increasing vulnerability during market stress.
Banxico noted that past depegging incidents underscore fragility in the stablecoin sector, which could trigger spillovers into broader funding markets during periods of heavy redemptions.
The central bank warned that regulatory divergence between frameworks such as Europe’s MiCA and the United States' GENIUS Act creates gaps that could incentivise arbitrage across jurisdictions.
Banxico said stablecoins can support faster settlement, cheaper transfers, improved remittance flows and DeFi liquidity, but stressed that it will maintain a cautious separation between digital assets and the formal financial sector.
Crypto adoption in Mexico remains limited, with the country falling to 23rd in Chainalysis’ 2025 Global Crypto Adoption Index, down from 14th the previous year.
Despite growth in platforms like Bitso, Mexico still relies largely on its 2018 Fintech Law, while other Latin American nations advance more comprehensive digital-asset rules.
Chainalysis data shows Latin America generated nearly $1.5 trillion in crypto transactions from July 2022 to June 2025, with monthly volume rising from $20.8 billion to nearly $88 billion in late 2024.
Brazil led the region with $318.8 billion in crypto inflows during the period, while Argentina followed with $93.9 billion, reflecting widespread adoption.
Brazil’s central bank recently finalised regulations placing crypto firms under banking-style supervision, including classifying certain stablecoin and self-custody transfers as foreign-exchange operations.
Argentina’s central bank is reportedly considering allowing traditional financial institutions to trade cryptocurrencies, potentially reversing its 2022 ban.