Brazil USDT Adoption Surges in 2023
30 Oct, 2023 ● Crypto News
According to data from Brazil's revenue service agency, the stablecoin Tether (USDT) has seen a significant increase in adoption, accounting for 80% of all cryptocurrency transactions in the country.
USDT transactions in Brazil this year totaled $271 billion Brazilian reais ($55 billion) as of mid-October, nearly double the volume of Bitcoin (BTC) transactions in the country, which totaled $151 billion reais ($30 billion).
Stablecoins are cryptocurrencies with a stable value that are often pegged to the value of fiat currencies such as the US dollar and the Brazilian real.
USDT transactions in Brazil have been increasing since 2021, but they surpassed Bitcoin volume for the first time in July 2022, just at the height of the crypto industry's storm last year, when crypto lenders Three Arrows Capital and Voyager Capital collapsed.
According to the government, the crypto winter reduced the volume of crypto transactions in the country by nearly 25% in 2022, ending at $154.4 billion reais, or $31 billion.
The Brazilian tax agency monitors citizens' crypto-related activities with a sophisticated system based on artificial intelligence and network analysis.
According to a blog post, the system can detect suspicious activity and track the location of cryptocurrency traders.
The revenue agency is also interested in crypto investments held by citizens of the country living abroad.
The local Congress passed legislation on Oct. 25 that recognizes cryptocurrencies as "financial assets" for tax purposes in foreign investments. Earnings of 6,000 to 50,000 reais ($10,000) earned abroad will be subject to a 15% tax rate beginning in January 2024, and taxes will be levied at 22.5% if this threshold is breached.
Since 2019, crypto exchanges in Brazil have been required to report all user transactions to the government. Capital gains from cryptocurrency sales that exceed 35,000 reais (7,000) per month are subject to a 15% to 22.50% tax bracket.
Sources:
https://cointelegraph.com/news/brazil-usdt-adoption-soars-2023-80-crypto-transactions
