Due to rising cryptocurrency trust and high inflation rates, the number of Brazilian businesses holding cryptocurrencies has risen to new all-time highs as of August.
According to local media sources, in August 2022, 12,053 distinct entities declared cryptocurrency on their balance sheets, according to the tax administration of the nation, Receita Federal do Brasil (RFB), often known as the Federal Revenue of Brazil.
This is the month with the greatest recorded number of companies having crypto holdings to date, up 6.1% from the 11,360 companies in July.
The RFB observed that Tether (USDT $1.00) and Bitcoin (BTC $19,478) are the two most common cryptocurrencies held by institutions.
However, the number of Brazilian individuals who own cryptocurrency decreased from the previous month, down to 1.3 million in August.
Due to the state of the cryptocurrency markets, the total value of all declarations decreased slightly as well, falling from $3.4 billion in July to $2.1 billion (11 billion Brazilian Reais) in August.
The stablecoin USDT, which is tethered to the U.S. dollar, had the greatest value exchanged in August, with over $1.42 billion moving over around 80,000 transactions, average 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.
It was noticed that the stablecoin USD Coin (USDC $1.00) fell from third to fifth place in terms of value transacted from July to August, falling behind Ether (ETH $1,327) and Brazilian Digital Token (BRZ), an ERC-20 token tied to the Brazilian Real.
According to a Bitstamp “Crypto Pulse” report from September, 77% of Brazilians said they trusted digital assets, indicating that trust in cryptocurrencies is still high.
More Adoption In Brazil
Many financial institutions in the nation have begun to provide services related to cryptocurrencies, including brokerage giant XP Inc. and payment platform PicPay, both of which integrated crypto exchange services in August. Additionally stepping up its efforts in the nation, cryptocurrency exchange Binance doubled its personnel since March and opened two new offices on October 4.
According to data from the nation’s statistics agency, Brazil’s inflation rate reached a 26-year high of 12.1% in April but has since moderated slightly to 8.7% in the most recent August estimates.