Brazil’s Receita Federal — the Particular Division of Federal Income — has just lately reported a considerable improve within the utilization of stablecoins, particularly Tether’s USDT.

In keeping with the regulator’s report, the quantity of USDT exceeded the mixed buying and selling quantity of all different cryptocurrencies in 2022.

Stablecoins make up roughly 10% of the worldwide buying and selling quantity of the crypto trade and are usually trusted extra as a secure haven when volatility peaks within the crypto market.

Over time since their inception, stablecoins have develop into a staple holding for anybody concerned in digital property as they bridge the hole between fiat currencies and crypto.

Stablecoins additionally supply a stage of predictability that has made them more and more well-liked for numerous monetary transactions.

USDT vs Crypto

In Brazil, Receita Federal knowledge signifies that probably the most continuously traded stablecoins are USDT (Tether) and USDC, each of that are pegged to the U.S. greenback, together with BRZ, which is linked to the Brazilian actual.

Since 2019, the Receita Federal has been conducting month-to-month assessments to maintain monitor of the expansion in stablecoin utilization.

Based mostly on the regulator’s analysis, stablecoins have surpassed Bitcoin in transaction quantity.

Based mostly on partial knowledge for 2023, 80% of reported cryptocurrency transactions are associated to USDT, making it probably the most traded digital asset within the nation during the last 10 months.

Bitcoin lagging

In keeping with the regulator, USDT started overtaking Bitcoin buying and selling quantity in 2022 after the high-profile collapse of Terra LUNA precipitated traders to flee into property that have been proof against the intense volatility, resembling stablecoins. USDT has develop into

USDT’s buying and selling volumes in Brazil exceeded 271 billion Brazilian reais (roughly $54 billion) through the noticed interval — practically twice the quantity of the flagship crypto Bitcoin (BTC), which traded at a little bit over 151 billion reais (roughly $30 billion) throughout the identical timeframe.

Comparatively, the worldwide 24-hour buying and selling volumes for USDT and Bitcoin stood at $14.58 billion and $14.01 billion, respectively.

Whereas USDT has a better quantity on common, the lead has by no means been bigger than roughly 50%, and it has by no means surpassed the mixed buying and selling quantity of all digital property.

Regulatory issues

The Receita Federal stated it has been carefully monitoring the numerous progress of USDT utilization because it might have substantial implications for the nation’s tax and regulatory panorama for digital property.

An evaluation of public knowledge reveals a notable shift within the profile of cryptocurrency transactions lately. The dominance of Bitcoin and different cryptocurrencies has been eclipsed by the rising recognition of stablecoins like Tether.

In keeping with the regulator, this shift warrants the federal government’s consideration and will probably result in further laws for the digital asset trade.