Brazilians are turning to stable coins as a way to protect themselves from fluctuating economic conditions. This is happening in the wake of the new government of Luiz Inacio “Lula” da Silva. According to statements from exchange executives, the volume of transactions in stablecoins is increasing rapidly in 2022, especially in the last two months of the year.
Brazilians use stablecoins as an alternative to the dollar
Stablecoins are surging in popularity in Brazil as investors and companies seek a refuge from the U.S. dollar to hedge against asset market volatility. Executives from several exchanges have declared that demand for stablecoins will surge during 2022, exploding in the last few months of the year.
Jose Artur Ribeiro, CEO of Coinext, a domestic exchange, told local newspaper O’Globo about the advantages of using stablecoins compared to using dollars in a bank account. He said,:
Stablecoins do not require you to pay management or performance fees. People who know how to manage their money prefer to leave the management to themselves. And stablecoins have an absolutely liquid market that moves 24 hours a day, reflecting the market price.
Thales Freitas, CEO of Bitso in the country, noted that the trading volume of stablecoins will increase by 85% in 2022 and that the platform is observing greater interest from Brazilians in these cryptocurrency assets. He explained that small businesses and individuals going abroad are fueling the demand for stablecoins.
Tether’sand USDT’s. Among the preferred coins
Ribeiro added thatUSDT, a dollar-pegged stablecoin issued by TetherUSDT, was one of the assets that saw a significant increase in trading volume after this public vote, Ribeiro said. Executed order volume nearly tripled from 877.5 million in October to 2,381 million in December.
USDTconsistently ranks among the top cryptocurrency assets with respect to moving value, according to figures released by the Brazilian Tax Agency (RFB), which receives reports on transactions by domestic exchanges.
For example, over $1.4 billion was moved usingIn August, 79,836 operations used USDTIn October, nearly $1.8 billion was traded usingUSDT119,366 transactions using USDTwere conducted using USDT
Third-party companies are working to integrateUSDTinto Brazil’s traditional payment system; in October, crypto technology company Smartpay partnered with ATM provider Tecban to offer Tether’sUSDTto 24 outlets; USDTto 24,000 ATMs across Brazil; USDT
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