In the first seven months of 2023, Tether (USDT) became Brazil’s most traded digital currency, reaching R$ 109.8 ($22) billion in transactions.
As per the Brazilian IRF, this marks an 84.5% increase over the R$ 59.5 ($12) billion recorded in the same timeframe in 2022.
Tether, tied to the US dollar, offers less volatility compared to speculative assets like Bitcoin, making it a preferred medium for transactions rather than merely an investment.
The rise in Tether’s use notably started in 2021. A comparison of yearly activity from January to July reveals:
Tether’s trading volume outpaces that of other digital currencies. Despite Bitcoin’s wider recognition, Tether’s trade volume is 14 times higher.
Furthermore, Tether records the highest average transaction value at R$ 66,300, dwarfing Bitcoin’s R$ 900 average.
The rise in Tether use has confused experts like Andre Franco from Mercado Bitcoin, highlighting unclear transaction origins.
The Federal Police are investigating Tether for its potential role in illicit import and export payments.
Allegedly, a portion of such international trade payments is made legally, with the remainder clandestinely moved in Tether, raising concerns about currency evasion.
The Federal Revenue faces challenges in monitoring these transactions, leading to unreported and untaxed irregularities.
No Financial Operations Tax is currently applied to crypto transactions. Treating Tether trades as real-to-dollar conversions could have generated up to R$ 1.2 billion in taxes by July 2023.
Companies like SmartPay now specialize in handling USDT as physical cash, providing ATM withdrawals via Pix.
The regulatory landscape for cryptocurrencies in Brazil is evolving, with the Central Bank seeking public input and the CVM monitoring securities-related assets.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceCrypto — Live Market Board
Rio Times · Live Market Intelligence
Crypto — Live Market Board
-0.26%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
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