The stablecoin Tether (USDT) has experienced a significant surge in usage in Brazil in 2023. According to data from Brazil’s tax authority, Tether now accounts for a staggering 80% of all cryptocurrency transactions in the country this year.
In monetary terms, USDT transaction volume amounted to $55 billion Brazilian reais (around $271 billion) as of mid-October. This dwarfed Bitcoin’s transaction volume of $30 billion Brazilian reais ($151 billion) in Brazil over the same period.
Tether’s growth in Brazil accelerated in 2022, overtaking Bitcoin transaction volume for the first time in July. However, crypto transaction volumes as a whole dropped nearly 25% in Brazil last year amid the broader crypto winter.
Brazil’s tax agency closely tracks crypto activities using advanced analytics. It requires local crypto exchanges to report all user transactions since 2019. Crypto earnings are also subject to capital gains taxes.
The recent popularity of Tether in Brazil highlights the growing appetite for stablecoin cryptocurrencies, which aim to maintain a steady value. As crypto volatility increases, stablecoins like Tether offer a way to transact and hedge while avoiding price swings.
