Markets Outlook – Stablecoins, Survival, and Trust in Emerging Markets (September 17, 2025)
Overview
In this episode of Markets Outlook by CoinDesk, the hosts are joined by Justin Norman, founder of The Flip and creator of a new documentary series focusing on stablecoin adoption at the last mile. The episode explores the varied roles stablecoins play in emerging markets, especially in Latin America and Africa, diving into the everyday realities, challenges, and tensions that emerge as individuals and businesses use crypto to navigate unstable or inaccessible financial systems. The conversation centers on how stablecoins are both a tool for survival and emblematic of deeper structural issues, with nuanced observations about local adaptation, trust, and legality.
Key Discussion Points & Insights
1. The Nuanced, Local Impact of Stablecoins
(00:00–01:26, 01:26–02:28)
- Global technology, local differences: Justin emphasizes that while stablecoins are a "default global technology," their actual adoption, use cases, and the specific problems they solve differ dramatically from market to market.
- Quote [A, 00:16]:
“...even though stablecoins are this kind of default global technology, the way in which they're being adopted and used and spent and the problems that they're solving can be vastly different market by market as well.”
- Quote [A, 00:16]:
- Need for a bottom-up approach: True understanding requires “this nuanced, like bottom-up approach to understand how it's going to solve problems depending on the market you're in” [A, 01:23].
2. Stablecoins Beyond Hyperinflation: The Argentina Case
(02:28–04:11, 04:11–06:02)
- Common assumptions vs. real motivations:
- Despite the narrative that hyperinflation drives crypto use in Argentina, Justin observes after on-the-ground research that hyperinflation is "maybe the third thing on the list." Instead, issues like "taxes and government overreach" and a deep-rooted dollar preference stemming from lack of trust are more important.
- Quote [A, 02:46]:
“Hyperinflation is maybe the third thing on the list. They'll say taxes and government overreach... there’s a long history of, I think, dollar preference as a result of lack of trust and taxation and different things like that.”
- Stablecoins as remittance and access tools:
- Stablecoins are crucial for moving money across borders, not necessarily for direct retail spending. On the street, pesos remain dominant and stablecoins are mainly off-ramped into local fiat for consumption.
- Quote [A, 03:18]:
“If they're spending in USDT or USDC, they're off ramping into pesos... I actually left thinking that the future is more of this entanglement and intertwined stablecoin fiat. You know, being able to move between them a lot easier and cheaper.”
3. The Tension Between Formal and Informal Economies
(04:11–06:24)
- Blurry lines in the economy:
- In Argentina, the greatest friction exists “between formal and informal” sectors, with a sizeable parallel market of dollars and cash necessary for business survival. About "30% of the economy … if they didn't operate informally, they couldn't exist in Argentina" [A, 04:43].
- Necessity, not choice:
- People resort to informal or parallel markets “because they have to,” not out of preference.
- Quote [A, 05:03]:
“They don't want to operate informally. But like, there is a reason why the parallel market exists and it thrives. And there's this tension between formal and informal, this like really gray line between legal and illegal.”
4. Bolivian Survival and Business Continuity
(05:16–06:24)
- Dollar shortages force innovation:
- In Bolivia’s agricultural industry, “they have to use stablecoins in order just to continue their business and to survive.” This highlights stablecoins as essential for maintaining economic activity where fiat and dollars are unavailable.
5. The Grey Area of Legality and Trust
(06:02–08:14)
- Parallel economies and trust gaps:
- Massive usage of physical dollars and stablecoins in Argentina exists outside of formal channels, largely due to institutional mistrust and regulatory limitations.
- Quote [A, 06:29]:
“In Argentina the second most amount of physical dollars in circulation outside of the US are in Argentina. So there's this entire thing that stablecoins are now plugging into...”
- What seems 'sketchy' is simply survival:
- Justin shares that practices which seem risky or outright illicit from a Western point of view are often "business as usual" in markets like Argentina or parts of Africa.
- Quote [A, 07:38]:
“What looks sketchy to the West is often just business as usual or how you have to operate in some of these markets. I don't think that that's very well understood… They just say, I don't have a choice.”
6. Stablecoins as 'Just Money'? Branding and Perception
(08:14–09:52)
- Crypto as infrastructure, not product:
- Panelists debate whether the term “stablecoin” itself is even useful; in many markets, USDT and the US dollar are treated interchangeably.
- Quote [C, 08:27]:
“It makes me feel like we're talking about SSMTP or like MP4s when we talk about music. I wonder if there’s almost a brand change that has to happen on the ground for people just to say, no, this is, it’s just money.”
- Anecdotes from the field:
- Justin shares observing USDT prices (but no stablecoin acceptance) in a Bolivian airport duty-free shop, illustrating the confusion and flux at the intersection of crypto and fiat.
- Quote [A, 08:37]:
“I walked around Argentina and asked people if they knew what stablecoins were and they said no. And then I said USDT. And some said, oh yeah… in some markets they do kind of think interchangeably about like USDT, USD—it’s the same thing.”
Notable Quotes and Memorable Moments
-
On local nuance:
"The way in which they're being adopted and used and spent and the problems that they're solving can be vastly different market by market… it really does take this nuanced, like bottom up approach..."
— Justin Norman [A, 00:16] -
On Argentina’s informal sector:
“There’s this tension between formal and informal, this like really gray line between legal and illegal. Also I think that maybe kind of resonates with stablecoins and crypto adoption as well.”
— Justin Norman [A, 05:03] -
On Western perceptions:
"What looks sketchy to the West is often just business as usual or how you have to operate in some of these markets."
— Justin Norman [A, 07:38] -
On rebranding crypto for everyday users:
"I wonder if there’s almost a brand change that has to happen on the ground for people just to say, no, this is, it’s just money."
— Host [C, 08:27] -
On stablecoins as an extension of everyday currency:
"In some markets they do kind of think interchangeably about like USDT, USD—it’s the same thing."
— Justin Norman [A, 08:54]
Key Segment Timestamps
- 00:00–01:26: Justin introduces the nuanced global adoption of stablecoins.
- 02:28–04:11: Argentina’s case – expectations vs. real on-the-ground stablecoin use.
- 04:11–06:02: The tension between formal and informal economic participation and its impact on crypto usage.
- 06:02–08:14: Legal grey areas and the pragmatic necessity of parallel economies.
- 08:14–09:52: Discussion on branding, perception, and interchangeable use of stablecoins and fiat.
Tone & Atmosphere
The episode is analytical but grounded, with first-person anecdotes and candid observations from Justin’s documentary travels. It’s critical of simplistic narratives about crypto in emerging markets, highlighting messiness, adaptability, and the constant negotiation between survival and legality.
Conclusion
This episode underscores the reality that stablecoins are not a one-size-fits-all solution; their adoption and impact are deeply shaped by local economic structures, histories, and trust dynamics. In emerging markets, the lines between formal/informal and legal/illegal are often blurred out of necessity, and technology is quickly normalized as “just money” even as terminology and infrastructure evolve. Justin’s perspective reframes how we think about crypto adoption—not as a purely technical or financial innovation, but as a new lens on century-old dilemmas of trust, survival, and adaptation.