USDT accounts for 80% of all cryptocurrency transactions in Brazil, surpassing Bitcoin volume. Increased regulatory efforts and new legislation recognize cryptocurrencies as financial assets.
In a significant development in the crypto space, Brazil has seen a surge in the adoption of the stablecoin Tether (USDT), which now accounts for 80% of all cryptocurrency transactions in the country. The volume of USDT transactions in Brazil has reached $271 billion Brazilian reais (~$55 billion) this year, surpassing the volume of Bitcoin transactions.
USDT, a stablecoin pegged to the US dollar, has emerged as the dominant cryptocurrency in Brazil. The high volume of USDT transactions indicates a shift in the preferences of Brazilian crypto users, who are increasingly opting for the stability of USDT over the volatility of other cryptocurrencies like Bitcoin. This trend is in line with the global rise of stablecoins, which are seen as a safer bet in the often turbulent crypto market.
The surge in USDT usage comes as Brazil intensifies its regulatory efforts in the cryptocurrency sector. The Brazilian tax agency has been using artificial intelligence and network analysis to track crypto-related activities. This includes targeting crypto investments held by Brazilian citizens overseas. The agency's efforts are part of a broader push to increase transparency and accountability in the crypto sector.
Adding to the regulatory changes, Brazil has passed legislation that recognizes cryptocurrencies as "financial assets." This means that starting from January 2024, taxes will be applied to cryptocurrency transactions. The move is expected to bring more legitimacy to the crypto sector in Brazil and could potentially encourage more people to invest in cryptocurrencies.
The rise of USDT in Brazil and the increased regulatory efforts signal a maturing crypto market in the country. As Brazil continues to embrace cryptocurrencies, it will be interesting to see how the landscape evolves and what impact it will have on the global crypto market.