Hideo Nakamura The Brazilian Tax Authority (RBF) has recently released a report acknowledging the rapid growth of stablecoin trading within Brazil, a phenomenon that has made a significant impact on the local cryptocurrency market. The most prominently traded stablecoin is Tether’s USDT, which has facilitated transactions exceeding 271 billion reals (equivalent to nearly $54 billion) since the tax authority commenced its registration of these transactions in 2019.
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Brazilian Tax Authority Highlights Growth in Stablecoin Trading
The Brazilian Tax Authority (RBF) has officially documented the “rapid expansion” in the trading of stablecoins, digital tokens tethered to the value of traditional currencies, within the nation. Remarkably, the trading volumes of these stablecoins have surpassed those of cryptocurrencies like Bitcoin (BTC). The RBF emphasizes that the inherent stability of these tokens augments their potential utility as a medium of exchange.
The RBF’s data, sourced from exchanges mandated by law to report their activities, identifies Tether’s USDT, as well as USDC and BRZ, a Brazilian real-pegged stablecoin, as the most actively traded stablecoins in Brazil. However, USDT stands out with significantly higher trading volumes, accounting for approximately 80% of all transactions in 2023.
Previously, the authority disclosed that, during the first two quarters of 2023, more than $18 billion worth of transactions occurred using USDT, constituting over 80% of the total volume within that period.
USDT’s Dominance Confirmed
The Brazilian Tax Authority has solidified USDT’s dominance in the national cryptocurrency landscape and suggests that this may have implications for future regulatory oversight of these digital assets. The institution conveyed:
“The prevalence of stablecoins like Tether has eclipsed the trading of Bitcoin and other cryptocurrencies. This shift warrants close scrutiny, as it could have significant repercussions on the taxation and regulatory framework governing cryptocurrencies in our country.”
According to the authority, since it commenced the collection of transaction data in 2019, USDT transactions have surged beyond 271 billion reals (approximately $54 billion). USDT’s reported trading volumes exceeded those of Bitcoin in 2022, with an exponential increase observed since July 2022.
Paolo Ardoino, CEO of Tether, commented on the report, attributing the growth to the practicality of USDT. He remarked:
“The surge in USDT adoption in Brazil is a natural outcome of its utility in addressing real-world challenges. When a product provides genuine solutions, it finds widespread use.”
In January, several experts from Brazil elucidated the preference for stablecoins over traditional dollars as a hedge against devaluation and inflation. Jose Artur Ribeiro, CEO of Coinext, a domestic exchange, cited the absence of administrative or performance fees and the presence of a liquid 24-hour market as key factors driving this choice.
Your thoughts on the prominence of Tether within the Brazilian cryptocurrency market are welcomed in the comments section below.
Frequently Asked Questions (FAQs) about stability in Brazilian crypto market
What does the Brazilian Tax Authority’s report highlight?
The Brazilian Tax Authority’s report underscores the remarkable growth of stablecoin trading within Brazil, surpassing the trading volumes of cryptocurrencies like Bitcoin. It emphasizes the potential utility of stablecoins as more stable mediums of exchange.
Which stablecoin is the most actively traded in Brazil?
Tether’s USDT emerges as the most prominently traded stablecoin in Brazil, accounting for approximately 80% of all stablecoin transactions in 2023.
How has USDT impacted the Brazilian cryptocurrency market?
USDT’s dominance in the Brazilian cryptocurrency market has prompted the Brazilian Tax Authority to suggest that it may have significant implications for future regulatory oversight of digital assets in the country.
What are the reported trading volumes for USDT in Brazil?
Since 2019, USDT transactions have exceeded 271 billion reals, which is equivalent to nearly $54 billion. These volumes surpassed those of Bitcoin in 2022.
Why do Brazilians prefer stablecoins over traditional dollars?
Several factors contribute to the preference for stablecoins among Brazilians, including the absence of administration or performance fees and the existence of a liquid 24-hour market for these digital assets.
More about stability in Brazilian crypto market
- Brazilian Tax Authority Report
- Tether’s USDT
- Bitcoin
- Cryptocurrency Market Trends
- Regulatory Implications
- Digital Asset News
- Economic Analysis
- Cryptocurrency Adoption
