When prices won’t sit still, people look for a lifeline. In 2025, that lifeline is often cryptocurrency—most visibly stablecoins—used as a quick, mobile way to hold value in a currency tied (in theory) to the U.S. dollar. This isn’t just anecdote. A growing stack of credible research and reporting points to rising use of crypto as inflation protection, especially in countries battling persistent price pressures.
The big picture: usage is climbing, and stablecoins lead
- Chainalysis’ 2024 Geography of Cryptocurrency report found that the share of stablecoin transactions has been rising across regions, dominating many types of crypto activity between mid-2022 and mid-2024. In other words, as markets chopped around, people kept reaching for digital dollars.
- The IMF’s 2025 working paper on international stablecoin flows estimates roughly $2 trillion in 2024 stablecoin transactions, with especially heavy activity in North America and Asia-Pacific, and outsized importance relative to GDP in some economies—consistent with the idea that households and small firms use stablecoins as everyday inflation shields and payment rails.
- The BIS (Bank for International Settlements) 2025 empirical analysis on cross-border crypto flows connects activity to risk and financial-access variables, noting that greater global risk aversion and limited financial inclusion tend to coincide with higher crypto flows—a pattern you’d expect when people are looking for safety or alternatives outside shaky local systems.
Takeaway: People aren’t only buying volatile coins to speculate; many are parking value in stablecoins to sidestep local inflation, transfer money, or hold savings in a more predictable unit.
Country snapshots: where inflation meets crypto
Argentina: “digital dollars” amid high inflation
Argentina’s consumer prices have been running hot for years. Unsurprisingly, crypto—especially stablecoins—boomed, prompting lawmakers and regulators to seek tighter guardrails around the sector. Reuters reported on efforts in mid-2024 to tame a fast-growing crypto market and reduce money-laundering risks—an indirect sign of just how popular these tools became among households and small businesses.
Turkey: protecting purchasing power as prices surge
Turkey’s inflation, while expected to cool from extremes, remains elevated. The government’s own 2025 plan still foresaw 28.5% inflation this year, with a gradual glidepath in later years; authorities have also taken crypto-related compliance steps to address AML concerns as usage spreads. Put together, the macro pressure plus policy response reinforces the storyline: people look to crypto when the lira’s buying power feels uncertain.
Why stablecoins (not just Bitcoin) are at the center
- Price stability vs. local currency: A dollar-pegged stablecoin can hold value better than a high-inflation currency, yet remains easy to send and spend. Chainalysis’ research notes that stablecoins have become the most popular crypto asset class by usage—exactly what you’d expect if people are seeking inflation protection, not pure speculation.
- Familiar unit of account: Saving and pricing in “digital dollars” is more intuitive than tracking a volatile coin day-to-day—especially for small merchants that just need predictable cash flow.
That doesn’t mean Bitcoin is irrelevant. For some, BTC plays the role of long-term store of value (the “digital gold” narrative). But for day-to-day inflation defense, the data suggests stablecoins do most of the heavy lifting.
What the research says about the drivers of adoption
- Risk and financial access matter: The BIS analysis links crypto flows to changes in global risk appetite and financial inclusion—hinting that when mainstream options feel fragile or out of reach, crypto usage tends to rise, not fall.
- Macroeconomic strain shows up in behavior: An academic study of G20 app downloads finds that higher sovereign default risk correlates with more crypto adoption—people download and use crypto apps when they fear their local system could wobble.
Benefits users cite
Why people do it
- Faster, borderless access to “harder” money: A stablecoin wallet can be set up in minutes, without waiting on a bank account approval.
- Everyday usability: Paying invoices, saving in dollars, and moving money across borders are straightforward once you’re onboarded.
- Diversification away from local currency risk: For firms paying suppliers in dollars, holding digital dollars can reduce FX shocks.
What could go wrong
- Regulatory shifts: As Reuters reported in Argentina and Turkey, governments will keep tightening rules to reduce abuses—changes that can disrupt services or create new compliance steps for users.
- Issuer risk: Stablecoins rely on reserve backing and governance; policy or disclosure changes at issuers can shake confidence.
- Platform risk: Using centralized on-ramps and off-ramps introduces counterparty risk; self-custody reduces it but demands good security habits.
How this trend could evolve in 2026 and beyond
- More transparent flow data: The IMF’s new methodology for estimating international stablecoin flows suggests we’ll get better country-level visibility going forward, which should sharpen policy and investment debates.
- Tokenization + stablecoin rails: As banks and market infrastructures experiment with tokenized deposits and assets, expect stablecoins to remain the retail and SME “bridge”—the spendable, liquid unit that complements institutional token projects.
- Convergence with regulation: Countries wrestling with inflation are likely to formalize rules that keep consumer access open while controlling illicit finance—mirroring steps we’ve already seen discussed by officials.
The Conclusion
Yes—the use of crypto as an inflation hedge is growing, with the clearest traction in stablecoins. The evidence spans Chainalysis’ adoption metrics, IMF flow estimates, BIS risk-linked findings, and Reuters’ on-the-ground reportingfrom high-inflation economies.
If you’re personally exploring crypto as an inflation shield:
- Start with reputable, transparent stablecoins. Read the issuer’s reserve reports and audits.
- Keep a clean on- and off-ramp. Use regulated exchanges or payment providers and keep records for taxes and compliance.
- Consider self-custody for savings. A hardware wallet plus backed-up seed can reduce platform risk—if you follow security basics.
- Diversify. Crypto can help, but it’s not a cure-all. Balance it with other inflation-resilient assets where possible.
- Watch policy updates. Rule changes can affect fees, KYC, and transfer limits. Staying informed can save headaches.
Inflation is a tax on time and trust. In places where traditional options feel thin, digital dollars and, to a lesser extent, Bitcoin are becoming everyday tools to defend purchasing power. The story isn’t hype; it’s a practical response to relentless price pressure—now increasingly visible in the data.