Stablecoins may look calm on the surface. Mexico’s central bank is not convinced they stay that way under pressure.
In its latest financial stability report, the Bank of Mexico (Banxico) warned that stablecoins pose meaningful risks to financial stability, citing their rapid growth, deepening ties to traditional finance, and uneven global regulation. According to the bank, those factors could amplify stress during market shocks rather than contain it.
At the core of the concern is structure.
Banxico pointed to stablecoins’ heavy reliance on short term U.S. Treasuries, a feature often marketed as a strength. In periods of stress, however, that exposure can become a vulnerability. The report also highlighted market concentration, noting that just two issuers control roughly 86% of total stablecoin supply, alongside past depegging episodes that revealed cracks in the system.
The bigger risk is spillover.
Without coordinated international safeguards, Banxico warned that mass redemptions or issuer failures could ripple into broader funding markets. Diverging regulatory approaches only add fuel to the fire. Frameworks like the EU’s MiCA and the U.S. GENIUS Act impose different rules around reserves, redemption rights, and depositor protections, creating fragmentation instead of consistency.
That fragmentation invites arbitrage.
According to Banxico’s analysis, issuers and users could exploit regulatory gaps across jurisdictions, concentrating risk where oversight is weakest. As a result, the central bank said it plans to maintain a cautious separation between traditional financial institutions and virtual assets, citing the potential for contagion into wider markets.
The warning is not one sided.
Banxico acknowledged that stablecoins can improve settlement efficiency, lower transfer costs, and support remittances and liquidity within decentralized finance. Still, the report concludes that the risks outweigh the benefits without stronger international regulatory coordination.
Mexico’s adoption numbers reflect that cautious stance.
Data from Chainalysis shows Mexico fell to 23rd place in the Global Crypto Adoption Index for 2025, down from 14th in 2024. Despite the presence of major exchanges like Bitso, the country has not rolled out new comprehensive crypto legislation and continues to rely on its 2018 Fintech Law as the primary framework.
The regional contrast is stark.
Brazil and Argentina now lead Latin America in crypto adoption. Chainalysis’ 2025 Geography of Crypto Report shows the region generated nearly $1.5 trillion in crypto transaction volume between July 2022 and June 2025. Monthly activity surged from $20.8 billion in mid 2022 to almost $88 billion by December 2024.
Brazil alone accounted for $318.8 billion, nearly one third of the region’s total. The country finalized rules in November placing crypto firms under banking style supervision. Argentina ranked second with $93.9 billion in transaction volume and is reportedly considering allowing traditional financial institutions to trade cryptocurrencies, a potential reversal of its 2022 ban.
Mexico’s message is clear. Stablecoins are powerful tools, but without global guardrails, they could carry risks that extend far beyond crypto itself.
