Brazilian businesses are embracing cryptocurrencies, with the nation recording the highest level of institutional cryptocurrency possession in August. According to the Brazilian Tax Authority, over 12,000 enterprises in the nation acknowledged ownership of cryptocurrencies on their balance sheets.
This is a rise from the 11,360 firms that filed in July. However, the number of individuals declaring bitcoin holdings during the same month fell by 35,000. With over 1.3 million individuals enrolling, the number is significant, and adoption rates remain high. The figures come from the RFB’s mandated monthly report on cryptocurrency ownership, indicating market direction.
USDT and Bitcoin Lead Adoption in Brazil
Interestingly, USDT is the most popular cryptocurrency in the nation. The dollar-pegged stablecoin has the highest transaction volume across all digital assets. In August, the total amount of USDT transactions exceeded $1.4 billion. This occurred throughout 79,836 transactions, with an average transaction value of $18,000.
However, when it comes to transaction volume, Bitcoin leads the pack. There were 2.1 million Bitcoin transactions, with an average amount of around $130. ETH, Brazilian Real-pegged stablecoin, BRZ, and the USDC, are other prominent cryptocurrencies in the nation.
The country’s rapid adoption rate has prompted established financial institutions such as Santander to include crypto in their portfolios.
Crypto Firms are showing interest in Brazil
#Binance opens two offices in Brazil in a move to expand in the country and to grow crypto adoption in Latin America.
The offices were announced by @cz_binance, who visited the country in March this year. Since then, we have more than doubled the team dedicated to Brazil.
— Binance (@binance) October 3, 2022
The growing acceptance of cryptocurrency in Brazil is attracting overseas crypto enterprises to the area. Binance recently tweeted that they are opening two offices in Brazil in order to promote crypto in Latin America.
FTX, a rapidly rising cryptocurrency exchange, has partnered with Visa to sell crypto debit cards in 40 countries, including many in Latin America. Meanwhile, the country’s fast adoption is most likely owing to the country’s economic situation, which has made dollar-pegged digital assets and stablecoins appealing.
However, legislative clarity on cryptocurrencies, particularly in taxes, has aided. In May, the RFB designated crypto-taxable assets and levied a tax on capital gains on sales. Only traders who transact more than BRL 35,000 (about $7,200) must disclose and pay taxes. Recently, Brazilian authorities arrested a gang allegedly using cryptocurrency to launder money.