Brazil’s Receita Federal — the Particular Division of Federal Income — has just lately reported a considerable enhance within the utilization of stablecoins, particularly Tether’s USDT.
In line with the regulator’s report, the quantity of USDT exceeded the mixed buying and selling quantity of all different cryptocurrencies in 2022.
Stablecoins make up roughly 10% of the worldwide buying and selling quantity of the crypto business and are typically trusted extra as a secure haven when volatility peaks within the crypto market.
Over time since their inception, stablecoins have develop into a staple holding for anybody concerned in digital belongings as they bridge the hole between fiat currencies and crypto.
Stablecoins additionally provide a stage of predictability that has made them more and more fashionable for numerous monetary transactions.
USDT vs Crypto
In Brazil, Receita Federal information signifies that probably the most regularly traded stablecoins are USDT (Tether) and USDC, each of that are pegged to the U.S. greenback, together with BRZ, which is linked to the Brazilian actual.
Since 2019, the Receita Federal has been conducting month-to-month assessments to maintain observe of the expansion in stablecoin utilization.
Based mostly on the regulator’s analysis, stablecoins have surpassed Bitcoin in transaction quantity.
Based mostly on partial information for 2023, 80% of reported cryptocurrency transactions are associated to USDT, making it probably the most traded digital asset within the nation over the past 10 months.
Bitcoin lagging
In line with the regulator, USDT started overtaking Bitcoin buying and selling quantity in 2022 after the high-profile collapse of Terra LUNA triggered buyers to flee into belongings that have been resistant to the intense volatility, akin to stablecoins. USDT has develop into
USDT’s buying and selling volumes in Brazil exceeded 271 billion Brazilian reais (roughly $54 billion) in the course of the noticed interval — almost twice the quantity of the flagship crypto Bitcoin (BTC), which traded at slightly over 151 billion reais (roughly $30 billion) throughout the identical timeframe.
Comparatively, the worldwide 24-hour buying and selling volumes for USDT and Bitcoin stood at $14.58 billion and $14.01 billion, respectively.
Whereas USDT has a better quantity on common, the lead has by no means been bigger than roughly 50%, and it has by no means surpassed the mixed buying and selling quantity of all digital belongings.
Regulatory issues
The Receita Federal mentioned it has been carefully monitoring the numerous progress of USDT utilization because it might have substantial implications for the nation’s tax and regulatory panorama for digital belongings.
An evaluation of public information reveals a notable shift within the profile of cryptocurrency transactions in recent times. The dominance of Bitcoin and different cryptocurrencies has been eclipsed by the rising reputation of stablecoins like Tether.
In line with the regulator, this shift warrants the federal government’s consideration and will probably result in extra laws for the digital asset business.
