Cryptocurrency

Brazilians are turning to stablecoins to protect savings from inflation

Hull Invest

According to recent market data, 50% of the trading volume of the Brazilian Real (BRL) involves stablecoins.

Recent developments show impressive figures for stablecoin usage in Brazil. Especially since only 5% of BRL volume is directly involved in the USD.

Additionally, BUSD and USDT are the top stablecoins used by Brazilians. In Brazil, stablecoins are seen as a great way to protect savings from inflation.

Brazil’s real continues to struggle to maintain its value as inflation continues to hit the South American nation hard, coupled with the global economic crisis. Inflation in June is I grew up It rises to a high of 9.704% in 2022. The real fell against the US dollar as Brazil struggled with inflation.

Brazil’s warm approach to cryptocurrencies

On December 22nd, Brazilian President Jair Bolsonaro signed A bill to legalize bitcoin as a means of payment in the country.

However, the bill does not promote BTC’s legal tender status in Brazil, but rather clarifies the premise and responsible bodies for regulating cryptocurrencies.

The bill also now requires Brazilian crypto companies to obtain licenses for the storage and management of virtual assets by third parties. It was enacted to prevent incidents.

Brazil currently holds the most cryptocurrency ETFs in Latin America, with most banks and brokers offering cryptocurrency investments and similar products such as custody and token offerings.

By 2024, the Central Bank of Brazil planned to introduce virtual reals.

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