Brazilians are turning to use stablecoins for Dollar Replacement
According to executives from multiple exchanges, demand for stablecoins increased dramatically in 2022, peaking in the latter weeks of the year.
The CEO of a national exchange, Jose Artur Ribeiro, spoke to the local newspaper O’Globo on the advantages of utilizing stablecoins over using dollars in bank accounts. He declared:
“Stablecoins do not pay an administration or performance fee. Those who know how to manage money prefer to leave management to themselves. And the stablecoin has an absolutely liquid market that works 24 hours a day reflecting the market price.”
Brazilians have shown increased interest in stablecoin assets, according to Thales Freitas, CEO of Bitso in the nation, who also stated that stablecoin trading volume increased by 85% in 2022. He notes that the demand for stablecoins is being driven by small and medium-sized businesses as well as individuals traveling abroad.
The dollar-pegged stablecoin created by Tether, USDT, was one among the assets that saw a big rise in trade activity following the most recent general election, according to Ribeiro. From 877.5 million in October to 2.381 billion in December, the number of orders that were actually fulfilled nearly tripled.
According to data made public by the Brazilian Tax Authority, USDT has continuously ranked first among cryptocurrency assets in terms of changing value.
For instance, in August, 79,836 operations totaling more than $1.4 billion were conducted utilizing USDT. 119,366 operations totaling roughly $1.8 billion were conducted in October using USDT.
The USDT has been integrated with Brazil’s established payment system by third-party businesses. Tether’s USDT became accessible at 24,000 ATMs across Brazil in October thanks to a collaboration between the cryptocurrency technology startup Smartpay and ATM supplier Tecban.
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