Karla Barker 
The Slow Burn of Inflation
I think we all feel it, but maybe not enough people talk about it. When inflation creeps up slowly, it’s like watching water boil—you don’t notice the exact moment things get bad, but suddenly your money doesn’t buy what it used to. In the U.S., people might not feel the urgency, but in Latin America, they’ve been living this reality for years.
Savings accounts paying near zero while inflation eats away at purchasing power creates a difficult situation. But perhaps there’s something happening that changes this dynamic. People in emerging markets are finding ways to protect their savings using digital assets, and it’s creating interesting opportunities.
How Bitcoin Collateral Creates Yield
The mechanics are surprisingly straightforward. Bitcoin holders put up their BTC as collateral to borrow stablecoins. The loans are overcollateralized—meaning you might need $200,000 in bitcoin to borrow $100,000. This creates security for lenders.
When borrowers pay interest on these loans, that interest gets distributed. Stablecoin depositors earn yields around 6-8.5%, which actually beats inflation. The platform takes a small spread, but everyone gets what they need. Bitcoin holders access liquidity without selling their assets, while stablecoin holders earn meaningful returns.
It’s a system that works because bitcoin makes good collateral. It’s liquid 24/7, globally recognized, and can be priced transparently across multiple exchanges. Unlike real estate that might take months to sell, bitcoin can be liquidated in seconds if needed.
Breaking Geographic Barriers
What’s interesting is how this removes location as a factor in financial access. A teacher in Buenos Aires can earn the same yield as a large institution in New York. Someone in rural Colombia can deposit stablecoins and immediately start earning returns that beat traditional savings options.
For people in countries with unstable currencies, this solves two problems at once. Stablecoins protect against local currency collapse, and the yields help combat dollar inflation. When your local currency might lose 50% of its value in months, even a volatile asset like bitcoin starts looking stable by comparison.
The Shift in Investment Strategy
This explains why we’re seeing such different portfolio allocations in Latin America. Bitcoin makes up about 54% of crypto holdings there, with stablecoins accounting for 46% of purchases. These aren’t speculative bets—they’re strategic moves by people who understand currency risk firsthand.
As infrastructure improves and regulations become clearer, this model seems likely to grow. Many Latin American financial institutions already have the partnerships and systems ready for stablecoin integration. It feels like we’re watching a gradual shift rather than a sudden change.
More Than Just Lending
Calling this just another lending product misses the point. It’s creating access to global capital markets without traditional banking requirements. No credit checks, no geographic restrictions—just collateral.
Families can use these yields to fund education without selling bitcoin holdings. Entrepreneurs can access working capital while maintaining long-term positions. Savers earn returns that actually matter while traditional banks offer near-zero interest.
Having lived through currency collapse changes your perspective on money. When you’ve watched salaries become worthless before people can spend them, when banks limit withdrawals while savings evaporate—you understand why people seek alternatives. This system provides not just yield, but an exit from broken financial systems.
That shared experience of financial instability explains why Latin America leads in stablecoin adoption. Traditional finance failed many people there, so they’re building something different. The combination of bitcoin-backed loans and stablecoin yields offers global access to credit and returns, regardless of where you live or which banks you use.
It’s solving real problems through open networks and transparent lending structures. That’s probably why adoption continues to grow, and will likely keep accelerating as more people discover these options.