In Brazil, the stablecoin Tether (USDT) has witnessed significant adoption, making up 80% of all cryptocurrency transactions in the country in 2023, as reported by Brazil's revenue service agency. Data indicates that USDT transactions have reached approximately 271 billion Brazilian reais, surpassing Bitcoin transactions, which totaled around 151 billion Brazilian reais.
Recent data from Brazil's revenue service agency reveals that the stablecoin Tether (USDT) has experienced a substantial surge in adoption within the country, accounting for 80% of all cryptocurrency transactions in Brazil in 2023. As of mid-October, USDT transactions had amounted to approximately 271 billion Brazilian reais, equivalent to around $55 billion USD. This volume significantly surpasses Bitcoin transactions, which reached approximately 151 billion Brazilian reais, equivalent to roughly $30 billion USD.
Stablecoins like Tether are designed to maintain a stable value and are often pegged to fiat currencies, such as the U.S. dollar and the Brazilian real. While the adoption of USDT in Brazil has been on the rise since 2021, it surpassed Bitcoin in transaction volume for the first time in July 2022.
The surge in USDT adoption coincided with a turbulent period in the cryptocurrency industry in 2022. During this time, several significant events took place, including the collapse of crypto lenders Three Arrows Capital and Voyager Capital.
It's worth noting that despite the recent surge in USDT transactions, the overall volume of cryptocurrency transactions in Brazil experienced a nearly 25% decrease in 2022 due to the crypto winter. In 2022, total cryptocurrency transactions in the country amounted to 154.4 billion Brazilian reais, or approximately $31 billion USD, according to government reports.
Brazil's tax agency employs advanced technology, including artificial intelligence and network analysis, to monitor and track cryptocurrency-related activities by its citizens. This system allows the agency to detect suspicious transactions and trace the locations of individuals engaged in cryptocurrency trading.
Additionally, the Brazilian Congress recently passed legislation recognizing cryptocurrencies as "financial assets" for tax purposes in foreign investments. Under this regulation, earnings from foreign cryptocurrency investments between 6,000 and 50,000 Brazilian reais (~$10,000 USD) will be subject to a 15% tax rate starting in January 2024. For amounts exceeding this threshold, tax rates will be set at 22.5%.
Since 2019, crypto exchanges operating in Brazil have been required to report all user transactions to the government. Capital gains from cryptocurrency sales exceeding 35,000 Brazilian reais (~$7,000 USD) per month are subject to a progressive tax rate ranging from 15% to 22.5%.
(ANA PAULA PEREIRA, COINTELEGRAPH, 2023)