The Central Bank of Mexico believes stablecoins pose serious risks, given that two issuers control 86% of the market, while there is a lack of a unified regulatory framework.
Banco de México has issued a strong warning about the risks stablecoins could pose to the financial system in its latest financial stability report. Mexico's central bank argues that Shard in global regulations is creating dangerous legal loopholes, paving the way for arbitrage opportunities across jurisdictions and potentially amplifying market shocks.
Banxico clearly points out the structural weaknesses of the stablecoin market through its unusually high level of concentration. With only two issuers holding 86% of the total supply, the market becomes extremely vulnerable to any disruptions to these dominant entities. Banxico also notes the heavy reliance of stablecoins on short-term US Treasury bonds, along with past incidents of price Peg loss that have demonstrated the fragility of this model.
Price discrepancies between jurisdictions are becoming a new threat.
The Central Bank of Mexico is particularly concerned about the differences in regulatory approaches between regions. While the European Union's MiCA and the U.S. GENIUS Act set separate requirements for reserves, repurchase mechanisms, and depositor protection, these gaps could encourage institutions to exploit regulatory arbitrage opportunities. Banxico warns that in the event of a mass repurchase or issuer collapse, consequences could spill over into larger funding markets if international coordination is lacking.
Mexico's cautious stance is clearly reflected in its relatively low adoption rate of cryptocurrencies. According to Chainalysis, Mexico has dropped from 14th to 23rd place in the Global Crypto Adoption Index 2025, and continues to rely on the 2018 Fintech Law without enacting new legislation on digital assets.
Conversely, neighboring countries are being far more proactive. Brazil leads Latin America with $318.8 billion worth of crypto assets traded between July 2022 and June 2025, while Argentina recorded $93.9 billion. Both countries are actively building regulatory frameworks, with Brazil finalizing regulations to supervise crypto companies on a banking model in November, and Argentina reportedly considering allowing traditional financial institutions to trade crypto assets.
