Can Crypto Solve the Remittance Puzzle in Latin America?

Breaking down the gap between crypto infrastructure and migrant needs

As stablecoins and blockchain-based wallets promise a new era of borderless finance, one question lingers: can cryptocurrency meaningfully improve remittances to Latin America and the Caribbean (LAC)? A recent briefing from the Inter-American Dialogue digs into the data, hype, and hard truths.

The Market Snapshot
There are roughly 2.4 million potential Latino migrant crypto users in the US-LAC money corridor, who could theoretically move up to $740M annually via wallets. Yet in context, this represents just 0.6% of the total remittance market.

So why hasn’t crypto taken off?

1. The User Doesn’t Match the Product
Crypto users skew young, urban, and tech-native. Migrant remitters, on the other hand, are often older and less digitally engaged. While wallets are designed for investors and crypto-native users, they rarely account for the needs of migrants: local currency access, intuitive UIs, and in-person cash-out.

2. Fragmented Wallet Ecosystem
The report reviewed 10+ wallets. Most serve exchange or custody functions. Few, like Osmo or Blaze, offer migrant-friendly features. Fee structures are low, but that’s not enough if the wallet can’t integrate with local stores or money agents.

3. Crypto Volumes Aren’t What They Seem
While the region sees $1B in daily crypto trades, only 5% of that is under $10K — indicating limited retail or remittance usage. Even in Venezuela, where crypto use is higher due to inflation and sanctions, Chainalysis found only ~1.2% of payments are actually performed via crypto.

Country Case Studies

• El Salvador: Despite national adoption of Bitcoin and the Chivo wallet, usage is low. Less than 3% of remittances go through Chivo.
• Venezuela: Anecdotal evidence shows crypto used for humanitarian relief and P2P transfers. Still, retail use is often overstated.
• Mexico: Bitso and others report billions in volume, but this is often B2B or platform-to-platform, not grassroots remittance activity.

What Needs to Change

• Design for migrants: Simplified UX, fiat off-ramps, and compliance.
• Regulatory clarity: Without regulatory support, banks won’t touch these flows.
• Partnerships with cash-out points: Crypto ATMs, agents, and hybrid models could help.

Conclusion
Crypto has the rails, the liquidity, and the promise — but without localized solutions, it remains a niche remittance channel. The opportunity is real, but closing the gap between speculation and adoption requires building for the users who need it most.

Sources include Inter-American Dialogue, Chainalysis, Central Reserve Bank of El Salvador, and others cited throughout the April 2025 briefing.