On October 25, the Brazilian Tax Agency published a report on the use of cryptocurrencies as a means of payment in the country. As the research showed, USDT is in huge demand. In 2023, USDT accounted for 80% of the total transaction volume in Brazil, which is 271 billion Brazilian Reals ($54 billion). Notably, this figure surpasses the combined volumes of all cryptocurrencies in the country.
Stablecoin is the cryptocurrency least subjected to market fluctuations. Algorithms and users themselves can be responsible for its stability, as well as the peg to real assets (for example, dollars or gold) smoothes out jumps in supply and demand. This makes stablecoins usable for everyday life! Details are in our ultimate guide on stablecoins.
Rising interest in USDT in Brazil
The Brazilian Federal Tax Agency began investigating cryptocurrency activity in the country in 2019. Since then, Bitcoin has consistently been the most popular choice of Brazilian citizens. However, in mid-2022, USDT overtook BTC in terms of volumes. The chart below illustrates this shift, with the numbers on it denominated in Brazilian reals, not US dollars.
USDT is a confident leader among Brazilian residents, boasting a transaction volume that eclipses all other cryptocurrencies in the country combined over time. Over time, this volume has surged to 271 billion Brazilian Reals ($54 billion). In the first part of 2023, USDT commanded more than 80% of the crypto transaction volume.
By comparison, Bitcoin’s volume in Brazil makes up 151 billion Brazilian Reals ($30 billion), less than half of USDT’s figures. Another popular stablecoin, USDC, is also marked on the chart, but its volume is very small — 23.9 billion Brazilian Reals ($4.7 billion).
Recall that since mid-2022, cryptocurrencies have been legalised in Brazil, and can be used for making payments. At the same time, the country is actively preparing for the launch of the Central Bank Digital Currency (CBDC).
Global adoption of stablecoins in 2023
Despite the fact that stablecoins are a convenient means of payment for purchases and services, not all countries are rushing to legalise them. For example, The International Monetary Fund (IMF), in a recent article devoted to the regulation of cryptocurrencies, states that the legalisation of cryptocurrencies as a means of payment "could threaten financial stability or rapid inflation".
Anyway, fintech giants are joining the world of crypto and stablecoins in particular. This summer, PayPal, in partnership with Paxos, launched its PYUSD stablecoin on Ethereum. Moreover, Visa is now testing USDC payments on Solana.
However, stablecoins are often subject to regulations that cryptocurrency companies must follow. In the summer of 2024, MiCA law will come into force in the European Union, because of which Binance will have to revise stablecoins on the exchange, available to citizens of the European Union. Also, not that long ago we wrote about the regulatory framework for stablecoins in Singapore, where only regulated ones are allowed to be used now.
Stablecoins are probably the most convenient thing that the world of crypto can offer to ordinary people at the moment. They give an ability to to transfer funds anywhere quickly and without intermediaries. Here is good news to come: you can buy USDT, EURT, USDC and DAI via bank card or SEPA using our smooth user-friendly itez service! We have a licence from the Lithuanian regulator, low fees and high transaction speed.
👀 Here are some other articles about stablecoins: