Stablecoin vs Traditional Payment Networks: What LATAM Businesses Need to Know

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Jul 18, 2025

For businesses across Latin America, moving money across borders is a persistent source of friction. High fees, slow settlement times, and complex compliance requirements have long plagued traditional payment systems, increasing the burden for exporters, SMEs, and fintechs. In 2024, cross-border transactions in the region carried some of the highest costs worldwide—averaging 3.95% for a $1,000 payment, with intra-LATAM transfers reaching as high as 6.48% (fxcintel.com).

Settlement delays of several days remain common, further disrupting business operations (softjourn.com). Mural Pay’s stablecoin payments infrastructure is transforming this reality for LATAM businesses, providing a digital alternative that is faster, more transparent, and cost-effective. Many leading stablecoins, such as USDC and USDT, undergo regular audits and publish transparency reports, further supporting confidence in their use.

Cross-border fees in LATAM often exceed 3%, while stablecoin transfers can cost under 1%.
Stablecoins settle in minutes, eliminating multi-day delays common with wires.
Public blockchains improve transparency and cut reconciliation workloads by 70% or more.
Regional regulators are rolling out sandboxes and fast-payment systems that favor digital rails.

What Are Stablecoins and Traditional Payment Networks?

Traditional payment networks like SWIFT, Visa, and Mastercard are the established highways of global finance—centralized, regulated, and widely trusted, but often slow and expensive for international transfers. In contrast, stablecoins are digital assets pegged to reserve assets like the U.S. dollar, designed to reduce volatility and enable near-instant settlement across borders. This stability is achieved through mechanisms such as collateralization or algorithmic adjustments.

Unlike classic cryptocurrencies, stablecoins are designed for practical use in business payments and remittances. Virtual accounts powered by stablecoins, such as those offered by Mural Pay’s Virtual Accounts, allow companies to receive, store, and convert funds in multiple currencies. This bridges the gap between traditional finance and next-generation digital payments while supporting operational flexibility.

How Do Stablecoins and Traditional Networks Compare for LATAM Cross-Border Payments?

When choosing between stablecoin solutions and traditional payment rails, the differences in cost, speed, and reliability are significant. Easy tracking on public blockchains gives stablecoins a major transparency advantage.

	Traditional Payment Networks (SWIFT/Visa)	Stablecoins (e.g., USDC, USDT)
Settlement Time	2–5 business days; can be longer due to reliance on correspondent banking relationships	Seconds to minutes, 24/7
Fees (avg.)	3.95% for $1,000; up to 6.48% intra-LAC	Often under 1%
Transparency	Limited; often complex fee structures	Clear, real-time tracking
Reliability	Delays, intermediaries, failed wires	Instant confirmation, fewer errors
Accessibility	Requires bank intermediaries	Accessible via digital wallets

Businesses using batch payments through stablecoin platforms like Mural Pay have reported a more than 70% reduction in payout and reconciliation time. This operational gain enables teams to focus on growth rather than administrative tasks.

Regulatory Realities: Navigating Compliance Across LATAM

Understanding the regulatory landscape is crucial for any business considering stablecoin payments. In Brazil, the Central Bank’s launch of Pix—a fast payment system—has driven digitalization and inclusion (elibrary.imf.org). Mexico’s CoDi platform, similarly, encourages digital payments adoption.

Colombia’s regulatory sandbox and Argentina’s banking restrictions illustrate the diversity of approaches to digital assets and compliance in the region. These initiatives signal a recognition among LATAM policymakers of the need for innovation and regulatory adaptation. For companies exporting from Mexico, the compliance checklist for USD virtual accounts provides practical guidance for navigating requirements.

Due diligence on issuers is essential, especially as transparency and regulatory standing can vary between stablecoins.

Stablecoin API Integration: Best Practices for LATAM Firms

For fintechs and marketplaces preparing to embed payouts directly into their platforms, choosing a stablecoin API integration strategy that aligns with regional regulations is critical. Start in sandbox mode to map endpoints for organizations, accounts, and payouts, then advance to production once KYB/KYC is cleared. Finance teams should configure role-based permissions and batch approval flows to keep oversight tight while scaling bulk payout automation across multiple countries.

The LATAM Stablecoin Surge: Adoption, Use Cases, and Trends

Stablecoin adoption is accelerating across Latin America, driven by the need for stability, efficiency, and cost savings. In Brazil, 90% of crypto transactions in 2024 were stablecoin-based (endl.io), reflecting a broader trend toward digital currencies in the region.

Use Cases: Remittances, hedging against inflation, and instant B2B payments. In countries like Argentina and Venezuela, stablecoins also offer a hedge against currency collapse.
Business Impact: Companies are leveraging stablecoins for payroll, supplier payments, and cross-border settlements—often with lower fees and greater transparency than legacy methods.
Institutional Innovation: Mercado Libre has introduced Meli Dólar, a stablecoin, to enhance loyalty programs in Brazil and Mexico.

Adoption in Colombia and Mexico is also surging, with leading fintechs integrating stablecoin rails and providing practical solutions for exporters and freelancers. For a deeper look at country-level trends, see stablecoin adoption in Colombia and Mexico.

Risks and Red Flags: What Businesses Must Watch For

While stablecoins offer many advantages, there are important risks to consider. The European Central Bank has noted that stablecoins “may not meet the ‘singleness of money’ criterion due to convertibility requirements”—raising concerns about monetary sovereignty and regulatory oversight (ft.com). Security, AML/KYC compliance, and the transparency of reserves behind stablecoins are also essential for businesses to evaluate.

Businesses must manage varied regulatory environments, which can create compliance complexity and risks from regulatory arbitrage. Tax treatment of stablecoin transactions is another layer of uncertainty.

For a closer look at operational risks, see stablecoin custody risks.

Real-World Proof: Case Studies from the LATAM Region

Several high-profile examples highlight the impact of stablecoins on business in Latin America:

Littio in Colombia offers USDC-based savings, helping citizens shield their wealth from currency volatility.
Nubank integrated USDC into its Brazilian portfolio, with 90% of crypto transactions now stablecoin-based.
Tether’s partnerships in South America aim to streamline cross-border commodity trade using stablecoins.

For detailed cost savings and compliance benefits, see global stablecoin accounts for Mexican SMEs.

Key Takeaways for LATAM Businesses

For LATAM businesses seeking to reduce costs, increase speed, and maintain compliance in cross-border transactions, stablecoin payments for LATAM businesses via Mural Pay offer an alternative to legacy systems.

By leveraging digital rails, companies can streamline operations, access new markets, provide enhanced financial services to partners and employees, and protect value in high-inflation economies.

Ready to explore whether stablecoin rails fit your payment stack? Contact our team to start a quick sandbox test or request a live demo.

Frequently Asked Questions: Stablecoins vs. Traditional Payment Networks

How do stablecoins compare to traditional payment networks in terms of transaction speed and cost?
Stablecoins routinely settle within seconds or minutes, whereas traditional cross-border payments can take several days and cost 3–6% or more per transaction (fxcintel.com).

What are the regulatory considerations for using stablecoins in Latin America?
Frameworks vary by country, but regulators in Brazil and Mexico have launched fast payment systems and are actively exploring digital currency regulation. Businesses should consult local compliance checklists and stay current on updates.

Can stablecoins help reduce remittance fees for LATAM businesses?
Yes, stablecoin remittances can lower costs to under 1% and provide near-instant delivery, compared to traditional services.

What are the risks associated with stablecoin transactions for businesses?
Key risks include regulatory uncertainty, reserve transparency, and operational vulnerabilities. Transparency and audit standards vary widely between stablecoins.

For a step-by-step guide to payroll, see our step-by-step guide to stablecoin payroll.