Crypto in Emerging Markets & Developing Economies: Adoption Patterns and Implications

Living in a developing nation certainly has its tradeoffs. While the food tends to be great, and we're overall decent at playing football (ahem, soccer), our money tends to be not-so-great over time. Inflation seems like it always bites a little deeper, currencies lose value faster, and borrowing costs get higher.

In light of this problem, digital assets, including Bitcoin and stablecoins, have become a useful tool for people living in these nations. They allow them to hedge against potential economic volatility by keeping their funds or simply getting paid on the blockchain. 

For this reason, developing nations rank among the top in cryptocurrency adoption worldwide, as digital assets provide people with an affordable alternative to an inflationary fiat.

PS: In this article, we'll cover how stablecoins are influencing adoption in emerging nations. If you want to learn everything about what Stablecoins are and what are their use, feel free to also check out this guide.

Why Emerging Markets Lead in Crypto Adoption

High inflationary pressures can quickly erode a person's purchasing power. In an economy where inflation can climb two digits in a month, the value of money itself becomes unstable, and everyday life grows more expensive.

This causes countries like Argentina, Turkey, and Brazil to have higher interest rates, due to something called the “country risk premium”, which is the extra return investors demand to lend money in nations where inflation, inequality, and political instability are high. 

For instance, Brazilian CDI, the interbank deposit rate that serves as a benchmark for loans and investments, is currently paying north of 14% a year, despite an inflation rate of “only” 4.68%. This means that investing in Brazilian fixed-income instruments would generate yields higher than any developed country, and even more than any expected staking returns in crypto. 

But here’s the catch: the Brazilian national currency (REAL / BRL) has steadily lost its value against currencies like the Euro or the Dollar over the years. While in the 90s the Real was close to a 1:1 ratio to USD, today the exchange rate is closer to 5 reais per U.S. dollar. And the same is true for the Argentine Peso, and many other fiat currencies from developing nations all around the world. Even worse, this ongoing corrosion of money doesn't just mean local inflation. 

Brazil, for instance, produces very little wheat. In its majority, wheat is imported from countries like the United States, where the transaction is settled in dollars. So, basically, Brazilian households now pay more than five times as much for a loaf of bread as they did 30 years ago.

Here is a comparison between American CPI inflation, compared to Argentina and Turkey, over the last five years:

And in light of that problem, cryptocurrencies were able to offer a viable option as a practical tool to preserve value in economies where fiat money fails. According to Chainalysis' 2025 Global Crypto Adoption Index, 4 out of the top 5 nations by cryptocurrency adoption are "underdeveloped". 

This phenomenon sheds light on a growing trend among those nations, where assets like stablecoins provide a much-needed security against inflationary volatility. 

Key Use Cases Powering Adoption

Remittances

Remittances are a critical source of income in many developing nations, yet traditional channels remain expensive and slow. According to the World Bank, the global average cost of sending money across borders is still above 6% of the amount sent. Blockchain technology offers a far more stable, less bureaucratic, and faster solution to that problem, as money moves around the world in a matter of seconds for a fraction of the fees. 

inflation Hedge

As we previously mentioned, countries like Argentina are leading places for stablecoin adoption, as people prefer to receive payments and save money in a digital dollar substitute, rather than holding fiat. The same Chainalysis report shows that Argentina ranks among the highest in grassroots crypto adoption, driven largely by the need to escape the volatility of local fiat.

Access to Global Markets

Crypto also provides access to financial opportunities beyond national borders. Decentralized finance (DeFi) platforms allow individuals in underbanked regions to lend, borrow, and earn yields without relying on traditional banks. Stablecoins serve as the backbone of these systems, enabling secure participation in global markets. For workers and savers in developing nations, this means access to tools and opportunities that were previously out of reach.

Regional Snapshots & Trends

Africa 

Nigeria has become one of the most striking case studies in grassroots crypto adoption. Inflation above 24% in 2023 and a naira that lost more than three‑quarters of its value since 2016 pushed citizens toward alternatives. 

Peer‑to‑peer Bitcoin trading remains strong, but stablecoins have taken center stage. A 2024 report showed that stablecoins accounted for 43% of all crypto transaction volume in sub‑Saharan Africa, with Nigeria alone recording nearly $22 billion in transactions. 

Latin America 

Argentina’s reliance on stablecoins is tied directly to its triple‑digit inflation. Chainalysis ranked Argentina among the top 20 countries globally for crypto value received, with stablecoins making up more than 60% of activity. 

Brazil shows a similar trend: the Central Bank reported that 90% of crypto use in the country is stablecoin‑related. Other nations like Colombia and Ecuador also rank highly in cryptocurrency adoption in the region.

Southeast Asia 

The Philippines has long been a remittance hub, with over $36 billion sent home annually. Crypto wallets like Coins.ph, licensed by the Bangko Sentral ng Pilipinas, now partner with Vietnam’s FinFan to streamline cross‑border payments. 

Stablecoins are used to settle transfers in dollars before disbursement, cutting costs and speeding delivery. Vietnam, meanwhile, has built one of the world’s most active GameFi ecosystems. 

India 

India is simply the leading nation in cryptocurrency adoption. With a population of over 1.4 billion people, the country ranks 1st in cryptocurrency use, powered by a mix of retail activity, developer participation, and growing institutional flows.

According to the Chainalysis 2025 Global Crypto Adoption Index, India tops the world in overall adoption,  with usage spread across centralized exchanges, peer‑to‑peer transfers, and DeFi protocols.

Challenges and Barriers

While widespread crypto and stablecoin adoption in developing regions solves a short-term issue for locals, the fact that the trend of abandoning the local currency to use "dollar-pegged" digital assets points to even weaker fiat currencies in the long term. Stablecoins give households an "escape hatch" from weak local currencies. This is great for individuals, but over time, it suggests that demand for the local fiat will decrease. 

In turn, this makes local central banks less "sovereign" over their own economic policies. After all, raising interest rates would no longer have the same stabilizing effect if households and businesses are already holding stablecoins instead of Pesos, Reais, or other local currencies.

But to counteract that trend, it's important to note that non-USD stablecoins are also gaining popularity in emerging markets. 

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In 2025, non-USD stablecoins are gaining a lot of traction, with weekly transaction volume reaching an ATH by Q3 2025. This adoption is led by stablecoins based on Brazilian and Singaporean stablecoins, but smaller markets are also showing some growth. 

Long-Term Implications

On another note, cryptocurrency adoption has introduced several benefits for users all around the world. From banking the bankless to revolutionizing how payments are settled, digital assets are now influencing how economic structures are built, moving even past their primary role as an "inflation hedge". 

Financial Inclusion 

Millions of people in places like Africa, South America, and South Asia remain excluded from banking integration. In places where states failed to do their parts to provide a basic financial structure, digital assets have the ability to fill in that gap. Crypto wallets and stablecoins provide a low-cost entry point, allowing individuals to store value, send money, and access financial services without needing a traditional bank account.

Stablecoins and CBDCs

Perhaps in light of the issue we spoke about earlier, about how stablecoins remove Central Banks' ability to influence capital, many CBs all around the world are working to create their own digital currency, known as Central Bank Digital Currency (CBDC).

Crypto wallets and stablecoins provide a low-cost entry point, allowing individuals to store value, send money, and access financial services without needing a traditional bank account. But CBDCs face an incredibly steep road to beat private coins like USDT in adoption. While Tether's currency is already deeply embedded in global payment flows, most CBDCs remain region-limited, with far fewer use cases. 

Web3 Entrepreneurship and Youth Employment

Digital assets are becoming the go-to payment method for startups all around the world. In emerging markets, this shift is even more pronounced. Freelancers in Nigeria, Brazil, and India increasingly accept stablecoins for cross‑border work, bypassing the delays and high fees of traditional banking.

Frequently Asked Questions

1. What are stablecoins?

Stablecoins are digital assets pegged to currencies like the U.S. dollar, designed to keep value steady.

2. Why are stablecoins popular in emerging markets? T

hey make saving and transacting easier, protect against inflation, and allow fast, low‑cost transfers.

3. How do stablecoins differ from CBDCs?

Stablecoins are issued by private companies and widely used across borders, while CBDCs are government‑issued and designed for domestic use.

4. Are remittances cheaper with crypto?

Yes. Blockchain transfers often cost a fraction of traditional remittance services and settle almost instantly.

5. Can crypto help entrepreneurs and freelancers?

Absolutely. Digital assets allow startups, freelancers, and small businesses to accept payments globally without banking barriers.