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Crypto assets and CBDCs in Latin America and the Caribbean: Opportunities and risks

Author

Listed:
  • Bespalova, Olga
  • Appendino, Maximiliano
  • Bhattacharya, Rina
  • Clevy Aguilar, Jean Francois
  • Geng, Nan
  • Komatsuzaki, Takuji
  • Lesniak, Justin
  • Lian, Weicheng
  • Marcelino, Sandra
  • Villafuerte, Mauricio
  • Yakhshilikov, Yorbol

Abstract

After providing a general overview of the nature, pros, and cons of crypto assets and CBDCs, this paper focuses on documenting their recent experience in LAC. The region records a high interest in unbacked crypto assets and stablecoins and its authorities’ policy responses have varied substantially, ranging from the introduction of Bitcoin as legal tender in El Salvador to their prohibition in many other countries worried about their impact on financial stability, currency/asset substitution, tax evasion, corruption, and money laundering. This paper also describes briefly the results of a survey on CBDCs’ introduction plans and crypto assets regulation. Finally, this paper presents some general lessons and policy recommendations for the region on the regulation of crypto assets, digital currencies and cross-border payments, and on the potential introduction of CBDCs.

Suggested Citation

  • Bespalova, Olga & Appendino, Maximiliano & Bhattacharya, Rina & Clevy Aguilar, Jean Francois & Geng, Nan & Komatsuzaki, Takuji & Lesniak, Justin & Lian, Weicheng & Marcelino, Sandra & Villafuerte, Mau, 2025. "Crypto assets and CBDCs in Latin America and the Caribbean: Opportunities and risks," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 6(2).
    • Handle: RePEc:eee:lajcba:v:6:y:2025:i:2:s2666143824000383
    DOI: 10.1016/j.latcb.2024.100157
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    Keywords

    Money; Monetary policy; Fintech; Cybersecurity; Central banking; Financial supervision; E-money; Crypto assets; Payment systems; Digital currency; Central Bank Digital Currency (CBDC); Latin America and Caribbean (LAC);
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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