Tether (USDT): Brazil’s New Crypto Darling

USDT Represents 80% of Total Crypto Transactions in Brazil by 2023

USDT is responsible for 80% of crypto transactions in Brazil in 2023.

Well, well, well, it seems like Tether (USDT) has become the talk of the town down in Brazil. This stablecoin has taken the country by storm, with its adoption skyrocketing to unimaginable heights. According to Brazil’s Receita Federal, a whopping 80% of all crypto transactions settled this year so far have been done using USDT. Talk about a stablecoin stampede!

The numbers don’t lie, folks. Tether’s transactions in Brazil reached a staggering $271 billion Brazilian reais (that’s around $55 billion for all you international investors) and left Bitcoin (BTC) transactions in the dust with a mere $151 billion reais. Sorry, Bitcoin, but it seems like Tether is the true belle of the Brazilian ball.

So, how did this all come to be, you ask? Well, let’s rewind a bit to 2021 when Brazil’s inflation rate hit a wild 10.06%. That’s right, folks, the highest level since 2015! This insane inflation led traders to scramble for a way to protect themselves from the steady depreciation of the Brazilian real against the US dollar. And voila, stablecoins came to the rescue, with Tether sitting pretty at the top of the popularity pyramid. Brazilians went wild for USDT, acquiring a staggering $9.7 billion worth between January and November 2021. That’s more than enough to buy a few rounds of Caipirinhas, if you ask me!

Now, let’s fast forward to August 2022. At that time, around 80,000 USDT transactions totaling $1.42 billion were made by Brazilian companies. That’s an average of almost $18,000 per transaction, folks. Not too shabby! And just when you thought Tether had reached its peak, it pulled another trick out of its hat. In October, a mind-blowing $1.8 billion was transacted using USDT in a whopping 119,366 operations. I don’t know about you, but I can already hear the cash registers ringing!

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But Tether didn’t stop there, oh no! In October 2022, they made USDT cryptocurrency available at over 24,000 ATMs across Brazil. Talk about bringing digital assets to the masses! They even joined forces with Brazilian payments company SmartPay and TecBan, the largest ATM provider in Brazil. Tether’s CTO Paolo Ardoino summed it up best when he said, “Adding tether tokens to ATMs across Brazil provides the opportunity to include more people in the financial system.” Bravo, Tether, bravo!

Now, let’s not forget about the other players in the stablecoin game. While Tether dominates the Brazilian market, USD Coin (USDC) is holding its own as the second most frequently traded stablecoin in the country. With $23.9 billion in USDC transactions this year, it’s definitely giving Tether a run for its money. And let’s not overlook BRZ, the largest non-dollar stablecoin. Launched in 2019, BRZ is making waves in Brazil with its peg to the Brazilian real. Who said stablecoins couldn’t be exciting?

So, my fellow investors, keep an eye on Brazil. It’s currently the fifth country in the world in terms of the number of cryptocurrency owners. The government has introduced some regulatory guidelines to keep things in check, but that hasn’t dampened the enthusiasm for digital assets. Just remember, if you’re operating in the crypto segment in Brazil, you better have that license and be ready to disclose your transactions. And don’t forget those taxes! Capital gains from crypto sales exceeding 35,000 reais per month will feel the taxman’s sting.

Now, go forth, my fellow digital asset connoisseurs, and may your investments in Brazil be as exciting and profitable as a samba dance under the moonlight!

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