Beyond the Dollar: Why the Next Stablecoin Era Will Be Multi-Currency

(Originally posted on LinkedIn - join the conversation there!)

USD-backed stablecoins like USDT and USDC dominate crypto, but that dominance may soon face serious competition.

Across Latin America, Asia, and Africa, a new wave of non-USD stablecoins is emerging. From peso-backed coins in Mexico to digital euro efforts in Europe, we're seeing an inflection point: stablecoins designed not for dollar markets, but for local liquidity, capital controls, and monetary independence.

So, why now?

First, liquidity is no longer a blocker. Exchanges like Bitso already support MXN trading pairs, so launching a peso-backed stablecoin is a natural step, not a moonshot.

Second, there’s real financial incentive. Governments and exchanges alike want more control over local currency flows—and issuing a local stablecoin opens up new revenue streams from interest on reserves.

And third, today’s economic instability may accelerate the shift. As trust in traditional systems erodes and inflation pressures mount, more governments and users are looking for alternatives to the dollar-centric financial status quo.

In countries like Argentina, where capital controls limit access to dollars, USD-stablecoins often circumvent official channels, enabling individuals to store value digitally and transact outside of traditional banking systems. While this reflects user demand, it also poses challenges for policymakers trying to manage monetary stability.

This creates urgency for governments to fight back. Not necessarily with CBDCs (which have largely stalled), but with private or public local stablecoins that help maintain policy levers like interest rates and capital flows.

Still, there are tradeoffs.

The same countries that most want to de-dollarize are often the ones whose sovereign debt is too risky to reliably back a stablecoin. If you’re issuing a peso-stable backed by local treasuries, you’re vulnerable to inflation and default. And that fragility erodes trust.

So what’s the opportunity?

A new model of merchant settlement is emerging, where buyers pay in one currency, but merchants receive another, instantly and with lower fees. Think of it as real-time FX, built on blockchain.

At Loop Crypto, we’re thinking hard about what this means for real-world commerce. What types of tools will merchants need to accept the broadest set of payment methods, particularly in a world with a range of stablecoins with distinct geographic focuses?

Non-USD stablecoins aren’t just a speculative niche. They have the potential to be the next logical step in global financial infrastructure.

Are non-dollar stablecoins a passing trend—or the start of a more inclusive, multi-currency digital economy?

Drop your thoughts, tag someone building in this space, or DM me if you’re working on cross-border payments or stablecoin infrastructure—we’d love to collaborate.