Brazil's Crypto Market Surges as Stablecoins Capture Up to 90% of All Transactions

Source: ETHNews Original Title: Brazil’s Crypto Market Surges as Stablecoins Capture Up to 90% of All Transactions Original Link: https://www.ethnews.com/brazils-crypto-market-surges-as-stablecoins-capture-up-to-90-of-all-transactions/ Brazil’s crypto ecosystem is undergoing a major shift as stablecoins like USDT and USDC increasingly dominate the country’s digital asset activity. New data from Brazil’s tax authority, combined with recent market analyses, show that stablecoins accounted for as much as 90% of total crypto transaction volume in certain months of 2025, underscoring their central role in payments, remittances, and capital protection.

Stablecoins Now the Backbone of Brazilian Crypto Activity

Crypto adoption in Brazil continues to accelerate. In the first half of 2025 alone, total transaction volume reached 227 billion reais (roughly $42.8 billion) marking a 20% year-over-year increase. Yet what truly stands out is how dominant stablecoins have become within that growth.

During this period, Tether’s USDT represented nearly two-thirds of all crypto transactions, dwarfing activity in other digital assets. Bitcoin, despite its global prominence, accounted for only about 11% of the volume. Analysts attribute this trend to practical financial needs rather than speculative trading.

Brazilians are using stablecoins for everything from payments and cross-border transfers to hedging against inflation and currency volatility, especially during periods of macroeconomic uncertainty. For many businesses and households, stablecoins offer faster, cheaper, and more predictable value transfer compared to traditional rails.

New Regulations Redraw the Framework for Stablecoin Use

In November 2025, Brazil’s central bank introduced new regulatory standards aimed at bringing the country’s fast-growing crypto sector under clearer oversight. The rules, which took effect in February 2025, formally placed crypto transactions under Brazil’s foreign exchange system.

Under this framework, buying, selling, and exchanging stablecoins are now treated as standard FX operations. The shift has sparked heated debate among policymakers and industry players, especially regarding taxation.

Brazil reportedly loses over $30 billion per year in untaxed crypto-related imports and transfers. Regulators argue that classifying stablecoin movement as foreign exchange opens the door to stronger supervision and potentially new tax obligations. Industry groups, however, warn that overregulation could stifle innovation and push activity offshore.

Brazil Remains One of the Region’s Most Advanced Crypto Markets

Despite the tightening regulatory environment, Brazil stands out as one of Latin America’s most sophisticated and crypto-friendly markets. Traditional banks, payment institutions, and neobanks continue expanding their crypto offerings, and institutional engagement has grown steadily throughout 2025.

The rise of stablecoins reflects this maturity. Instead of relying solely on speculative assets, Brazilian users are embracing digital dollars as functional financial tools, embedded deeply into commerce and daily transactions.

As the regulatory landscape evolves, the coming year will test how Brazil balances innovation with oversight, and whether stablecoins will maintain their overwhelming dominance in one of the world’s most active crypto economies.