Stablecoins Dominate Brazil’s Crypto Market Amid Growing Adoption

Stablecoins have become the dominant force in cryptocurrency transactions in Brazil, with a significant 90% of digital asset activity linked to these assets, according to the president of the Central Bank of Brazil, Gabriel Galipolo.

Speaking at an event in Mexico City, he noted that digital asset adoption in the country has surged in recent years. However, this rise in stablecoin use also brings challenges, particularly in terms of taxation and preventing money laundering.

Galipolo also clarified that Brazil’s Drex digital currency, currently under development, is not a central bank digital currency (CBDC). Instead, it is a project designed to enhance credit access by utilizing collateralized assets.

Drex will leverage distributed ledger technology for wholesale interbank transactions, with retail access focused on tokenized bank deposits. The Central Bank of Brazil began testing Drex’s integration with decentralized finance (DeFi) and tokenization in October 2024, as part of its preparations to replace the country’s real-time settlement system.

Brazil is second only to Argentina in cryptocurrency activity within Latin America. Between July 2023 and June 2024, Brazil saw about $90 billion in crypto deposits, with stablecoins accounting for 59.8% of the total volume. Bitcoin, Ether, and altcoins made up the rest of the market activity.

In line with the growing demand for crypto, Mercado Libre launched the “Meli Dollar,” a dollar-pegged stablecoin in Brazil, in August 2024. This comes amid a broader global trend where stablecoins are outpacing traditional financial institutions in transfer volumes.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.