The Brazilian Tax Authority (RBF) recognizes the significant growth of stablecoin trading in Brazil, with Tether’s USDT leading the way. This trend may impact the regulatory landscape for cryptocurrencies in the country.
The Brazilian Tax Authority (RBF) has officially acknowledged the remarkable surge in stablecoin trading within the country. This growth has notably overshadowed the trading volumes of cryptocurrencies like Bitcoin. Stablecoins are valued for their stability, which expands their utility as a means of payment.
Data collected from exchanges obligated to report their transactions by law reveals that Tether’s USDT, USDC, and BRZ, a Brazilian real-pegged stablecoin, are the most traded stablecoins in Brazil. USDT, in particular, dominates with an 80% share of all transactions in 2023.
During the first two quarters of 2023, more than $18 billion were transacted using USDT, representing over 80% of the total volume for that period. The Brazilian tax authority recognizes USDT’s leadership, emphasizing its potential impact on future regulatory oversight in the country.
USDT’s transactions in Brazil have surpassed 271 billion reals (approximately $54 billion) since the reporting requirement began in 2019. This reflects the increasing preference for stablecoins over cryptocurrencies like Bitcoin and may have significant implications for cryptocurrency taxation and regulation in Brazil.