- The Brazilian Tax Agency pointed out that the cryptocurrency market had a considerable increase during the first month of the year, growing by 10%.
- According to the tax authority, $2.85 billion dollars were transacted during the first month of 2023.
- Of the total $2.85 billion that was traded in January, $2.3 billion used USDT.
Brazil is the most populous country in South America and one of the largest emerging economies worldwide. It currently has great importance in the global economy and its movements have impacts not only in the region, but throughout America, and at the beginning of 2023 it showed attachment to cryptocurrencies…
In accordance with NewsBitcoin, The Brazilian Tax Agency pointed out that the cryptocurrency market had a considerable increase during the first month of the year. Operations grew more than 10% with the stablecoin Tether (USDT) being the one with the highest volume; analysts see this as “related to OTC (over-the-counter) operations.
Brazilian citizens, unlike what happens in other countries of the world, have to communicate their movements and pay taxes in this regard, for this very reason, the tax authority has clear control over what the situation is: it was reported that $2.85 billion dollars were transacted during the first month of 2023.
Crypto market recovers
Brazil, like Mexico and the rest of the crypto ecosystem, was affected by the serious events that affected it last season: the fall of the Terra labs cryptocurrencies (UST and LUNA), plus the bankruptcy of FTX took away support for a sector that despite adversities remained alive. Optimists consider that this 2023 will be a transition for a bullish 2024, the year in which a new halving will take place.
During 2022, Brazil has set some records in terms of the purchase of digital assets: in July, 1,336,715 locals admitted to holding cryptocurrency. This means that almost 1% of all the inhabitants have them. It is expected, if the prices are good, that the adoption will be even greater in the country governed by Lula da Silva, who replaced Jair Bolsonaro in office.
USDT, the favorite of Brazilians
Despite its economic potential, Brazil does not escape the serious problem that affects the world: inflation. For this reason, many citizens have decided to take refuge in stablecoins linked to the dollar, such as USDT, The most important stablecoin in the world and with a capitalization of more than $71 billion dollars, it is the great favorite among investors.
Of the total $2.85 billion that traded in January, $2.3 billion used USDT. The dominance of the stablecoin developed by Tether, a Hong Kong-based company, reaches a maximum of 80%. During 2022, despite some criticism that the company received for “unclear” balances, the use of USDT in Brazil grew by 50%.
“We have been able to see in the volumes reported to the revenue service a very large, very significant volume of USDT that is not on the local exchanges. This leads us to believe that this volume is on the major OTC desks and that they are meeting a different type of demand.”, highlighted Fabricio Tota, business director of Mercado Bitcoin, one of the most important local exchanges in the market.
The analysis carried out by the specialist indicates that not only minor investors rely on USDT to protect themselves from inflation, but also some institutions could be using it to send money abroad avoiding the high fees required by the traditional market.
The top 100 cryptocurrencies have nine stablecoins: USDT, USD Coin (USDC), Dai (DAI), TrueUSD (TUSD), Pax Dollar (USDP), USDD (USDD), Gemini Dollar (GUSD) and Fei USD (FEI). ). However, Brasli almost went exclusively for Tether.
As is the case in other Latin American countries in crisis, such as Venezuela, Colombia or Argentina, cryptocurrencies continue to accumulate more and more investors and this trend is projected to continue.
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