Perspectives on Remittance Flows in 2025

LATIN AMERICA ADVISOR

Financial Services Advisor

A biweekly publication Of the dialogue

April 23, 2025

What Would Be the Impact of New Stablecoin Rules?

U.S. lawmakers recently advanced legislation for a regulated marketplace for stablecoins, such as Tether. // File Photo: Formatoriginal via Adobe Stock.

Q

A

Mike Derham, former partner at Novam Portam in New York: “The two core challenges of stablecoins are adoption and the value of the underlying currency. On both dimensions, Latin America remains more attractive than the United States. Digital financial success isn’t driven by perfect programming, but rather by user adoption. Sustainable customer acquisition cost is the deciding factor. In the United States, Tether aims to compete with Zelle and Venmo, but those payment rails already face competition, from no less than the Federal Reserve and its Fednow service. But despite official backing, no one uses Fednow because major banks haven’t adopted it, and it isn’t being marketed. Tether would face similar challenges convincing Americans to switch. Stablecoins are also only as strong as their underlying currencies. The dollar’s once unchallenged strength faces questions…”

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ABOUT THE financial services ADVISOR

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Staff

Gene Kuleta
Editor
202.463.2920
gkuleta@thedialogue.org
Jack Quinn
Reporter

jquinn@thedialogue.org
Lori Rampani
Reporter

lrampani@thedialogue.org

board of advisors

Ernesto Armenteros
Vice Chairman
of the Board,
Banco de Ahorro y Credito Union

Michael Diaz
Partner,
Diaz, Reus & Targ, LLP

Desiree Green
Vice President,
Int’l Gov’t Affairs,
Prudential Financial

Earl Jarrett
Deputy Chairman & CEO
The Jamaica National Group

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

Thomas Morante
Attorney,
Carlton Fields

Manuel Orozco
Senior Fellow,
Inter-American Dialogue

Adalberto Palma Gómez
Senior Partner,
Aperture SC

Rodolfo Pittaluga
Adjunct Professor,
Florida International University
College of Law

Roberto Teixeira da Costa
Founder & Board Member Emeritus, CEBRI

Mario Trujillo
CEO,
DolEx Dollar Express

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