Due to specific economic issues in South American nations, such as unstable currencies, institutions are drawn to holding cryptocurrency. Similar to this, as of August, Brazil had a record-high number of businesses holding cryptocurrencies due to rising inflation rates and growing public confidence in the technology.
The country’s statistics agency says Brazil’s inflation rate peaked in April at 12.1% and has since decreased somewhat to 8.7% in the most recent August estimates. According to a September Bitstamp “Crypto Pulse” report, 77% of Brazilians said they trusted digital assets, indicating that trust in cryptocurrencies is still high.
According to local media sources, in August 2022, 12,053 distinct entities declared cryptocurrency on their balance sheets, according to the nation’s tax administration, Receita Federal do Brasil (RFB), often known as the Federal Revenue of Brazil. This is the largest monthly total of corporations with crypto holdings ever reported, up 6.1% from the 11,360 companies in July.
In order to provide a window into the development and direction of the market, the Brazilian Tax Authority (RFB) updates the market each month on changes in the number of necessary disclosures about the ownership of cryptocurrencies.
USDT and Bitcoin are the most common cryptocurrencies held by institutions, according to the RFB. The stablecoin USDT, pegged to the U.S. dollar, had the highest transaction value exchanged in August, with over $1.42 billion moving over around 80,000 transactions, averaging around $17,500. Despite ranking top in terms of volume, with over 2.1 million transactions in the same month and an average transaction value of under $130, BTC came in second with approximately $270 million transacted.
The number of individual statements slowed significantly in August compared to July, falling by 35,000. More than 1,300,000 people claim to have some cryptocurrency as part of their assets; therefore, this metric is still high.
From July to August, the tax agency noted that the USD coin (USC) ranked fifth, down two places from third in terms of transaction volume. It was outranked by Ethereum (ETH) and a Brazilian Real pegged ERC-20 token called the Brazilian Digital Token (BRZ).