Tether Dominates Brazil As Bitcoin, Ether Fall Out Of Favor

Key Points:

• Brazilians appear to choose the stablecoin tether as their preferred cryptocurrency in a nation where economic volatility is as prevalent as coconuts.
• Thomaz Fortes, the cryptocurrency lead at Brazil’s Nubank, was quoted by Chainalysis as claiming that the major use case for Brazilians is as a speculative investment.

Brazilians appear to choose the stablecoin tether as their preferred cryptocurrency in a nation where economic volatility is as prevalent as coconuts.

The value of all tether transactions increased by 58% in value last year compared to the previous year, according to the federal tax administration, which analyzes data on cryptocurrency usage from international and domestic exchanges. Also widely used cryptocurrencies bitcoin and ether had drops of more than 60% from 2021.

Brazil passed a legislation governing cryptocurrencies last year, marking a significant advancement as the nation embraces digital assets.

Thomaz Fortes, the cryptocurrency lead at Brazil’s Nubank, was quoted by Chainalysis as claiming that the major use case for Brazilians is as a speculative investment.

According to Thomaz Fortes, the crypto lead at Nubank, one of the world’s largest digital banking platforms that recently launched a crypto trading platform, the main use case for crypto in Brazil right now is as a speculative investment. “Customers want a way to expand their earnings,” he explained. “Interest rates at all-time lows in the country and strong price appreciation in cryptocurrency prices may have contributed, but the adoption continued strong even in the so-called crypto winter.” 

“The retail growth in the number of users in crypto has been much faster than in the equities market. It took several years to get to several millions of equity investors,” Fortes observed. Nubank reached 1 million customers just one month after launching its crypto platform. “It’s not only institutional or high-net-worth individuals. Democratizing access means a lot of retail adoption. Here at Nubank, we developed the experience for trading cryptocurrencies so that we could break the barriers of complexity common in niche crypto brokers.”

Four months after introducing the service, Nubank had 1.8 million crypto clients.

According to Statista, the country’s cryptocurrency-related revenue is anticipated to expand at an average annual rate of 15.25% between 2023 and 2027.

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