Central American Monetary Council Proposes Regional Stablecoin for Monetary Stability

Generated by AI AgentCoin World
Sunday, Jul 13, 2025 11:13 am ET1min read
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The Executive Secretariat of the Central American Monetary Council (SECMCA) has proposed the creation of a regional stablecoin named the Central American Peso ($CA). This initiative is designed to enhance monetary stability and promote financial integration across Central America and the Dominican Republic. The primary goal is to reduce transaction costs within the region, addressing shared economic challenges such as inflation and the volatility of local currencies.

The $CA stablecoin, supported by blockchain technology and shared oversight, offers a stable alternative to traditional currencies. By lowering transaction expenses and improving the efficiency of cross-border payments between member countries, the stablecoin aims to strengthen the regional financial system. This potential solution is particularly relevant as countries face persistent economic pressures, providing a means to increase monetary autonomy and reduce dependence on fluctuating foreign currencies.

Stablecoins like USDC,

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, and DAI are already widely used by individuals and businesses in Central America for their stability. Several countries in the region are also exploring cryptocurrency regulations to modernize their financial systems. However, the success of the $CA project hinges on political will and the commitment of regional governments. Effective institutional cooperation between national central banks is crucial for establishing the necessary governance and backing, making unified support a cornerstone for the project's advancement.

Stablecoin adoption is on the rise across Latin America. In Colombia, 13.7% of FinTech companies currently use stablecoins, with industry analysts projecting significant growth by 2027. Brazil, in particular, has shown substantial market activity, with transactions involving USDT (Tether) reaching 9.63 billion Brazilian reais (approximately $1.7 billion USD) in June alone. This represents a 32% increase compared to May, solidifying Brazil’s position as a regional leader in stablecoin adoption.