Brazil's interest in cryptocurrencies and blockchain technology is accelerating crypto adoption in the country.
Statistics released by Brazil's tax authority, the Receita Federal do Brasil (RFB), in August reveal that a total of 12.053 companies and organizations in the country have declared themselves as cryptocurrency investors.
According to statements made by Brazilian companies, The most in-demand cryptocurrency is the market leader Bitcoin (BTC), followed by the stablecoin Tether (USDT).
Brazilian news outlet Livecoin noted that the current figures represent a record growth compared to those seen last July, when the number of companies that had declared themselves as cryptocurrency investors in the country was 11.360 organizations.
Thousands of companies declare cryptocurrencies in Brazil
Although August saw a new record in the number of organizations declaring cryptocurrencies in Brazil, the outlet noted that the total value declared that month fell compared to July.
The 12.053 companies that own cryptocurrencies in Brazil declared a total of 11.036 billion Brazilian reals in August, equivalent to about $2.120 billion dollars; while in July this value had risen to more than 12.200 billion Brazilian reals. The total value of declarations made in August, by companies that invest in and own cryptocurrencies, represented a drop of 9,5% compared to July.
The number of individual investors participating in the cryptocurrency market that month also saw a slight decline, recording a total of 1,3 million individual investors.
Source: RFB
According to the media, companies in Brazil have been required since 2019 to declare their holdings and investments in cryptocurrencies under Regulation No. 1.888/2019.
Bitcoin and Tether, the favorites of Brazilians
Bitcoin, the most capitalized cryptocurrency in the crypto market, was the most traded cryptocurrency in Brazil in the month of August.
According to the data, In August, Brazilians made more than 2,1 million transactions with BTCThe second most traded cryptocurrency during the same month in Brazil was Ethereum (ETH), with more than 1,19 million transactions recorded.
Brazilian stablecoin BRZ and USDT rank third and fourth as the most traded cryptoassets in the country during that month. However, in terms of traded volume, USDT ranks first, with a volume of over BRL 7.400 billion.
Source: RFB
Other popular cryptocurrencies in Brazil were USDC, DCR and CHZ, which recorded trading volumes between BRL 430,8 million and BRL 43,9 million.
On the other hand, although Bitcoin recorded the highest number of cryptocurrency transactions in August, the average value of each transaction was very low compared to the average value of transactions made with stablecoins, especially with USDT.
Brazil, a favorable environment for cryptocurrencies
In Brazil, specific regulation for cryptocurrencies has not yet been defined. However, this has not stopped the development of the crypto ecosystem or prevented several cryptocurrency companies from opening their doors in the country. This is because Brazil is creating a healthy environment for the development of the crypto ecosystem.
Lawmakers in Brazil have authorized the creation of several publicly traded crypto investment funds, and are pushing for new laws to Legalize payments with cryptoassets and are promoting Bitcoin mining with healthy energy. Even the Brazilian government created a research unit dedicated specifically to understanding the potential of cryptocurrencies and blockchain and launched its own blockchain to control public spending.
Also, the local government of Rio de Janeiro is promoting several initiatives to promote the adoption of Bitcoin, cryptocurrencies and new technologies, in order to become an innovative technological center of global reference. All this is making the Brazilian crypto ecosystem grow and is favoring the participation of companies and citizens within this growing industry.
Continue reading: Brazil wants its own Bitcoin Beach
