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, claiming that the major use case for Brazilians is as a speculative investment. He added:
“Customers want a way to expand their earnings,”
“The retail growth in the number of users in crypto has been much faster than in the equities market."
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.