Brazil's Receita Federal has observed an exponential increase in stablecoin usage, primarily Tether's USDT. Notably, USDT's trading volume has exceeded the combined trading volume of all cryptocurrencies in Brazil, reflecting rising inflation and stability during market volatility.
Tether's Dominance in Brazil.
USDT accounts for a staggering 80% of the crypto transactions in Brazil, surpassing Bitcoin in volume. Over the past ten months, USDT witnessed a trading volume of $54 billion, doubling that of Bitcoin, which stood around $30 billion. Globally, while USDT's 24-hour trading volume outpaced Bitcoin's, it never exceeded the total trading volume of all cryptos combined by more than 50%.
Regulatory Concerns and Monitoring
The substantial rise in stablecoin usage raises regulatory concerns in Brazil. Receita Federal, Brazil's tax authority, monitors USDT usage. Simultaneously, the Central Bank of Brazil is aiming to tighten cryptocurrency regulations due to potential links to tax evasion and illicit activities. The impact of stablecoins on tax implications and the potential for regulatory scrutiny has heightened attention from financial regulatory bodies.
This content is for informational purposes and doesn't constitute financial or legal advice. Always consult with professional advisors regarding financial and regulatory matters.
