The Brazilian Federal Revenue Service agency, the Receita Federal, has recently reported a significant surge in the usage of the stablecoin Tether (USDT) within Brazil, accounting for nearly 80 percent of all crypto transactions in the country so far in 2023. The report is based on only partial data from 2023.
The USDT transactions have been rising in Brazil since July 2020 but surpassed Bitcoin volume for the first time in July 2022. By mid-October 2023, the volume of USDT transactions in Brazil exceeded R$271 billion, nearly double that of Bitcoin, which amounted to over R$151 billion during the same period.
The volume of USDT traded in Brazil has even crossed the sum of all other top cryptos traded within the country during this period. Some of these top cryptos overtaken by USDT in Brazil include Bitcoin (BTC), Ethereum (ETH), Brazilian real stablecoin (BRZ), USD Coin (USDC), and XRP.
The USDT had shown a continuous rise in Brazil even during the storm in the crypto industry in 2022, when the overall volume of crypto transactions in Brazil declined by nearly 24.3 percent. Being a stablecoin, USDT was immune to extreme volatility.
The Brazilian agency conducted the analysis using a comprehensive system that monitors crypto activities in the country. It used modern data processing techniques, artificial intelligence, and complex network analysis to track crypto activities. The system also detected suspicious activities related to crypto transactions within the country.
There are several reasons why USDT has become so popular in Brazil. One is that USDT is pegged to the US dollar, so its value remains relatively constant. It offers a more stable value than other cryptos, such as Bitcoin, which are volatile. This stability makes USDT more attractive for Brazilians looking to store their value in a digital asset.
According to a recent report by Chainalysis, a blockchain data analysis firm, Brazil ranked ninth globally in digital assets adoption, making the Brazilian crypto market one of the largest in Latin America for crypto trading.
The surge in USDT adoption in Brazil indicates the growing popularity of crypto in the country. USDT could help elevate Brazil to prominence in the digital assets and web3 space.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash