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The adoption of the popular stablecoin Tether (USDT) in Brazil has surged to an astonishing 80% share of all crypto transactions in the country, surpassing Bitcoin’s dominance.
USDT Surpasses Bitcoin in 2022
According to data from Brazil’s tax agency, USDT transactions in Brazil reached approximately $271 billion Brazilian reais. The amount is equivalent to around $55 billion USD, by mid-October 2023. This figure is nearly double the volume of Bitcoin transactions in the country. This stood at $151 billion reais (about $30 billion USD).
Brazil’s Ongoing USDT stablecoin Journey
USDT’s rise to prominence in Brazil has been a consistent trend since 2021. And it achieved a significant milestone in July 2022 when it surpassed Bitcoin in transaction volume, marking a noteworthy shift in the country’s crypto landscape.
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Crypto Taxation in Brazil
However, despite this remarkable growth, Brazil witnessed a dip of nearly 25% in crypto transactions in 2022 due to the crypto downturn. By the year’s end, the reported volume was $154.4 billion reais, approximately $31 billion USD.
Overseas Crypto Investments Face Taxation
In addition to monitoring domestic crypto transactions, Brazil’s tax agency has oversight to include crypto investments held by Brazilian citizens. This development followed the country’s parliament recognizing crypto as “financial assets” for tax purposes. Starting in January 2024, earnings from overseas investments ranging from 6,000 to 50,000 reais (approximately $10,000 to $100,000 USDT stablecoin) will be subject to a 15% tax rate, with higher amounts incurring a 22.5% tax rate.
In Brazil, profits from crypto sales exceeding 35,000 reais (about $7,000 USD) per month are subject to a tax rate ranging from 15% to 22.5%. These regulations reflect the country’s evolving stance on crypto assets and their financial implications.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, Gold Futures it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
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