According to the Brazilian tax agency’s data, there has been a significant increase in the use of the USDT stablecoin in Brazil in 2023. USDT accounted for approximately 80% of all cryptocurrency transactions in the country. The volume of USDT transactions in Brazil for this year as of mid-October reached 271 billion Brazilian reals, which is approximately 55 billion US dollars. This is almost double the volume of Bitcoin transactions, which amounted to 151 billion reals (about 30 billion US dollars) for the same period.
The surge in USDT popularity is explained by the fact that stablecoins are designed to maintain a stable value pegged to specific fiat currencies. In the case of USDT, its value is pegged to the US dollar. This makes stablecoins a more preferable means of payment and value preservation compared to volatile cryptocurrencies like Bitcoin.
USDT: Stability and Growth
The popularity of USDT in Brazil has been growing since 2021 but first surpassed Bitcoin’s volumes in July 2022 during the peak of the crypto boom. Despite the overall decline in the crypto market, the share of USDT continues to increase.
Tax Regulation and Control
The Brazilian government is taking active measures to regulate the cryptocurrency sphere and monitor the activities of citizens related to cryptography. A tracking system based on artificial intelligence and network analysis helps identify suspicious activities and track cryptocurrency transactions.
An important development is the new law passed by Congress, which recognizes cryptocurrencies as «financial assets» for the purposes of taxing foreign investments. This law introduces taxes on overseas income depending on their size, starting from January 2024. This means that Brazilian investors conducting cryptocurrency operations abroad will be required to pay taxes on their earned income.
Therefore, despite the general instability of the crypto market, the use of USDT in Brazil demonstrates steady growth. The government is actively implementing measures to regulate and tax cryptocurrency operations. All of this indicates a gradual integration of crypto assets into Brazil’s financial system. To legally work with cryptocurrencies and carry out numerous crypto transactions for your crypto business, you should consult specialists from Crypto Legal Services. A cryptocurrency license is necessary to integrate the crypto economy into the traditional financial system. This will allow you to benefit from innovations in the cryptocurrency sector and minimize potential risks.
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