The rapid ascendancy of stablecoins, particularly USDT (Tether), has been making waves in Brazil’s cryptocurrency market. As per recent data unveiled by the Brazilian tax department, the USDT trading volume has hit an astonishing figure of around $54.5 billion as of mid-October this year. Notably, this is nearly double the trading volume of Bitcoin within the same timeframe.
Colin Wu, a Chinese crypto reporter, shared insights on Brazil’s USDT trading volume growth:
The Brazilian tax department said that Brazil’s USDT trading volume has been growing rapidly since 2021. As of mid-October, Brazil’s USDT trading volume this year reached approximately US$54.5 billion, almost twice the Bitcoin trading volume during the same period.… pic.twitter.com/H10cZLYFJB
— Wu Blockchain (@WuBlockchain) October 30, 2023
Stablecoins, the crypto assets that generally maintain parity with real-world currencies, commodities, or a basket of various assets, have seen substantial growth in Brazil. The stability they offer in terms of value, as the name suggests, makes them an appealing option for many, broadening their potential as a legitimate means of payment.
Two of the most prominent stablecoins in Brazil are USDT (Tether) and USDC. Both these digital assets maintain a 1:1 parity with the US dollar. In addition, the Brazilian stablecoin BRZ, which is pegged to the Brazilian real, is also gaining traction.
Historical data from Federal Revenue surveys, ongoing since 2019, underscore the meteoric rise in stablecoin adoption. The volume of Tether trades alone has amassed to over R$271 billion, a figure that significantly overshadows Bitcoin’s R$151 billion during the analogous period.
This burgeoning trend hasn’t gone unnoticed. Brazil’s Federal Revenue Service is keenly monitoring the explosive growth of stablecoins, which globally account for trillions of transactions. In today’s diverse digital currency ecosystem, which boasts thousands of unique cryptocurrencies, the growth trajectory of stablecoins like Tether is undeniably altering the landscape.
A deeper dive into publicly accessible data unveils a transformative change in transaction patterns. Traditional cryptocurrencies like Bitcoin are no longer the frontrunners; instead, stablecoins have taken center stage. Visual representations, such as graphs of transaction volumes, further elucidate this shift, signifying a marked change in the preferences of cryptocurrency users.
This evolving trend is not merely a statistical observation. It holds considerable implications, especially in shaping the future tax and regulatory framework for cryptocurrencies in Brazil. As the nation grapples with this shift, it could set precedents for how other countries approach and navigate the burgeoning world of stablecoins.
Given these developments, stakeholders in the financial and regulatory sectors are urged to remain abreast of these changes. A keen understanding of the evolving landscape will be instrumental in making informed decisions in taxation, regulation, and more.
Brazil’s cryptocurrency domain is undergoing a significant transformation. The ascendancy of stablecoins, especially Tether, over traditional cryptocurrencies like Bitcoin suggests a potential recalibration of the crypto ecosystem in future years.
