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Taming Inflation in Latin America: How DeFi is Reshaping Finance in Hyperinflationary Countries


Latin America is facing significant challenges with hyperinflation rates reaching alarming levels, threatening the livelihoods of its people. Download this report for an in-depth look at the challenges of the current coping mechanisms, and how DeFi technologies, and technology providers, are stepping in to transform inflation-protection solutions around the world.

This report is for general information purposes only. It does not constitute legal, financial, or other professional advice, and should not be relied upon as such. IOV Labs Ltd. accepts no responsibility for any loss or damage that may arise from reliance on information contained in this publication. Readers should seek independent professional advice before making any investment or financial decisions based on the information contained in this publication.

Key Challenges

Skyrocketing inflation: Inflation in Latin American economies has reached one of its highest points in 10 years at an average of 13.3% for the region. This number is astonishingly higher in certain countries such as Venezuela (~200%), Argentina (72%) and Suriname (52%).

Hurdled innovation: Despite the substantial funding ($3.3 billion) fuelling fintechs in LATAM, the region still struggles with insufficient regulatory sandboxes to enable testing of innovative fintech technologies or products that tackle everyday problems like hyperinflation.

Informal dollarization: Restrictions on buying foreign currencies in many Latin American countries drive people in need towards the black market, where the exchange prices are volatile during high demand times.

Report Insights

Stablecoins are here to stay: More than one-third of Latin Americans have embraced stablecoins for everyday purchases, far surpassing the global average of 11%.

Blockchain can save billions of dollars: Blockchain holds immense potential to generate substantial savings for financial institutions engaged in cross-border transactions, with an estimated $10 billion in savings projected by 2030.

World leaders keeping an eye on DeFi: G20 leaders are prioritizing blockchain technology to address problems posed by the current financial infrastructure, including boosting stablecoin and digital asset use to create interoperable, efficient, affordable, and accessible financial systems.

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