Brazil has been fostering the adoption of crypto in the country, and the country’s citizens have also enthusiastically responded to crypto adoption and regulation.
According to the latest reports published by the Brazilian tax authority (RBF), part of the Ministry of Finance administering all manner of federal taxation, the companies in the country have become more progressive towards adopting crypto as a part of their treasuries.
Data suggest that almost 42,000 companies invested in cryptocurrency during October. The October figures broke September records wherein 40,161 companies had invested in crypto. Interestingly, the number of individuals who purchased crypto during the same period dropped to 1,265,818 from 1.5 million in September.
Figures reveal that companies have been accumulating as a part of their treasuries to take advantage of the market’s low prices. However, the influence of the collapse of FTX on the trust of Brazilian investors is not clear yet, considering that the figures belong to October. The report also portrayed essential data regarding the number of transactions registered, and the amounts exchanged using each token.
Following the trail of the past months, Tether’s USDT, the dollar-pegged stablecoin, was the token used to settle more funds in Brazil in October. As per data, almost $1.8 billion were transacted using USDT in almost 119,366 operations.
An added advantage of the USDT is that the third parties offer to connect it with the traditional financial system. In October, a cryptocurrency firm collaborated with a Brazilian ATM provider to allow users to convert the token into fiat currency in more than 24,000 ATMs.
However, Bitcoin remained the favorite, registering the highest number of transactions with 1.34 million, moving about $190.2 million.
Following Bitcoin was BRZ, a local real pegged stablecoin registering the second highest number of operations, about 693,086. Most of these operations were mainly on FTX, and it is unclear if other available markets will absorb these volumes. As per data, USDC and Ethereum compete for the top five currencies with the maximum volume settled.
Brazilian companies have been investing in considerable numbers in crypto for months. The number of companies topped the list in August, September, and October.
Authorities in the country have been supportive and hopeful of crypto. A proposal submitted to the Brazilian parliament in June suggested an addition to an existing law that would allow cryptocurrency as a mode of payment. Two Brazilian cities, i.e., Rio de Janeiro and Curitiba, also allow citizens to pay taxes in crypto.