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Crypto News

Tether (USDT) Grabs 80% of Brazil’s Crypto Market Share in 2023

Author

Jay Solano

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Tags Editor's Choice / Slider Posts

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2 mins
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Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update

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In a remarkable trend for 2023, Tether (USDT) has captured a dominant 80% of Brazil’s cryptocurrency transactions, signaling the stablecoin’s soaring adoption in the nation.

Brazil’s revenue service agency data unveils that USDT has seen a meteoric rise, constituting 80% of the nation’s crypto trades. By mid-October, USDT transactions in Brazil reached $271 billion Brazilian reais (equivalent to ~$55 billion USD). This figure almost doubles Bitcoin’s transaction volume, which stood at $151 billion reais (about $30 billion USD). As stablecoins, cryptocurrencies like USDT are crafted to maintain consistent value, typically anchored to mainstream fiat currencies such as the U.S. dollar and the Brazilian real.

Tracing back to 2021, USDT transactions had begun to pick up steam in Brazil. However, it was in July 2022 that they eclipsed Bitcoin’s volume. This transition coincided with significant disturbances in the crypto sector, notably the collapse of crypto lenders Three Arrows Capital and Voyager Capital.

To monitor the crypto activities of its populace, Brazil’s tax agency employs an advanced tracking system underpinned by artificial intelligence and network analytics. This system is adept at flagging suspicious crypto endeavors and pinpointing the exact location of crypto traders.

In a move to regulate offshore crypto assets of Brazilians, the National Congress, on October 25, greenlit legislation classifying cryptocurrencies as “financial assets” in the realm of foreign investment taxation. Commencing January 2024, international crypto earnings ranging from 6,000 to 50,000 reais (around $10,000 USD) will attract a 15% tax. Earnings beyond this bracket will be taxed at 22.5%.

Furthermore, since 2019, Brazil has mandated that all crypto exchanges within its territory report every user transaction to the authorities. Any capital gains surpassing 35,000 reais (approximately $7,000 USD) per month from crypto transactions are taxed progressively, ranging between 15% and 22.50%.

Brazil’s crypto market landscape is a blend of global giants such as Coinbase, Binance, Bitso, and Crypto.com and local heavyweights like Mercado Bitcoin and Foxbit.