Exchange executives have claimed that stablecoin trade volumes had increased in 2022, particularly in the final two months of the year.
Brazilians Use Stablecoins to Replace the Dollar
As investors and businesses seek safety in the U.S. dollar to hedging against the volatility of the asset market, stablecoins are growing in favor in Brazil.
According to executives from multiple exchanges, demand for stablecoins increased dramatically in 2022, peaking in the latter weeks of the year.
The CEO of a national exchange, Jose Artur Ribeiro, spoke to the local newspaper O’Globo on the advantages of utilizing stablecoins over using dollars in bank accounts.
Brazilians have shown increased interest in stablecoin assets, according to Thales Freitas, CEO of Bitso in the nation, who also stated that stablecoin trading volume increased by 85% in 2022.
USDT from Tether is One of the Preferred Coins
The dollar-pegged stablecoin created by Tether, USDT, was one of the assets that saw a significant increase in trading volume following the most recent general election, according to Ribeiro.
From 877.5 million in October to 2.381 billion in December, the number of orders that were actually carried out nearly tripled.
According to statistics made public by the Brazilian Tax Authority (RFB), which collects reports of transactions made by national exchanges, USDT has continuously ranked at the top of cryptocurrency assets in terms of moving value.
For instance, in August, 79,836 operations totaling more over $1.4 billion were conducted utilizing USDT.
119,366 operations totaling roughly $1.8 billion were conducted in October using USDT.
Tether’s USDT became accessible at 24,000 ATMs across Brazil in October thanks to a collaboration between the cryptocurrency technology startup Smartpay and ATM supplier Tecban.