According to recent market data, 50% of the Brazilian Real (BRL) volume involves stablecoins.
With only 5% of the BRL volume involving USD directly, the recent development presents an impressive figure about the usage of stablecoins in Brazil.
Further, BUSD and USDT are the most popular stablecoins among Brazilians. Stablecoins are considered one of the best ways to protect savings from inflation in Brazil.
A combination of inflation and the global economic crisis continues to weigh heavily on Brazil’s Real. It was the highest inflation rate in 2022 in June, at 9.704%. Brazil’s struggle against inflation weakened the Real against the dollar.
Cryptocurrencies in Brazil: a warm welcome
Brazil’s president, Jair Bolsonaro, signed a bill legalizing Bitcoin as a form of payment on Dec. 22.
However, the bill does not push BTC as a legal tender in Brazil but clarifies how crypto will be regulated and which institutions will oversee it.
Furthermore, the bill now requires crypto firms in Brazil to obtain licenses for third-party custody and management of virtual assets. In the near future, anything similar to the collapse of FTX will be prevented by the legislation in place.
In Latin America, Brazil has the most cryptocurrency ETFs, and most banks and brokers offer cryptocurrency investments and similar products. Brazilian Central Bank plans to introduce virtual Real by 2024.