{"id":16333,"date":"2023-01-11T11:38:08","date_gmt":"2023-01-11T11:38:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/brazilians-turn-to-stablecoins-as-alternative-to-us-dollar-for-hedge-against-volatility-news-bitcoin-news\/"},"modified":"2023-01-11T11:38:08","modified_gmt":"2023-01-11T11:38:08","slug":"brazilians-turn-to-stablecoins-as-alternative-to-us-dollar-for-hedge-against-volatility-news-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/brazilians-turn-to-stablecoins-as-alternative-to-us-dollar-for-hedge-against-volatility-news-bitcoin-news\/","title":{"rendered":"Brazilians Turn to Stablecoins as Alternative to US Dollar for Hedge Against Volatility \u2013 News Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

Brazilians are turning to stablecoins as a way of shielding themselves from the volatility of economic circumstances. This is happening now in the wake of the inauguration of the new government of Luis Inacio \u201cLula\u201d Da Silva. According to statements coming from exchange executives, the trading volumes of stablecoins have soared in 2022, especially during the last two months of the year.<\/strong><\/p>\n

<\/p>\n

Brazilians Harness Stablecoins as Dollar Replacement<\/h2>\n

<\/p>\n

The popularity of stablecoins in Brazil is soaring as investors and companies are looking to take refuge in the U.S. dollar to hedge against the volatility of the asset market. Executives from several exchanges have declared that demand for stablecoins has skyrocketed during 2022, and exploded during the last months of the year.<\/p>\n

<\/p>\n

Jose Artur Ribeiro, CEO of Coinext, a national exchange, told local newspaper O\u2019Globo about the benefits that using stablecoins presents, versus using dollars in bank accounts. He stated<\/a>:<\/p>\n

<\/p>\n

<\/p>\n

Stablecoins do not pay an administration or performance fee. Those who know how to manage money prefer to leave management to themselves. And the stablecoin has an absolutely liquid market that works 24 hours a day reflecting the market price.<\/p>\n

\n<\/p><\/blockquote>\n

<\/p>\n

Thales Freitas, CEO of Bitso in the country, indicated that the volume of stablecoin trading grew by 85% in 2022 and that the platform has observed greater interest of Brazilians for these cryptocurrency assets. He explains that small and medium-sized companies, and individuals going abroad, are the ones fueling the demand for stablecoins.<\/p>\n


\n <\/p>\n

Tether\u2019s USDT<\/a> Among the Preferred Coins<\/h2>\n

<\/p>\n

Ribeiro added that USDT<\/a>, the dollar-pegged stablecoin issued by Tether, was one of the assets that recorded a significant increase in its trading volumes after the latest general ballot. The volume of orders executed grew from 877.5 million in October to 2.381 billion in December, almost tripling.<\/p>\n

<\/p>\n

USDT<\/a> has been consistently ranking at the top among cryptocurrency assets in regards to moving value, according to numbers released by the Brazilian Tax Authority (RFB), which receives reports of transactions made by national exchanges.<\/p>\n

<\/p>\n

For example, more than $1.4 billion was moved<\/a> using USDT<\/a> across 79,836 operations in August. In October, almost $1.8 billion was transacted<\/a> using USDT<\/a> in 119,366 operations.<\/p>\n

<\/p>\n

Third-party companies have made efforts to integrate USDT<\/a> with the traditional payment system in Brazil. In October, Smartpay, a crypto tech company, partnered<\/a> with Tecban, an ATM provider, to make Tether\u2019s USDT<\/a> available at 24,000 ATMs across Brazil.<\/p>\n

<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
Bitso<\/a>, Brazilians<\/a>, coinext<\/a>, Dollars<\/a>, hedge<\/a>, Jose Artur Ribeiro<\/a>, O’Globo<\/a>, smartpay<\/a>, Stablecoins<\/a>, tecban<\/a>, Tether<\/a>, Thales Freitas<\/a>, USDT<\/a>, volatility<\/a><\/div>\n<\/div>\n

What do you think about the interest that Brazilians have in stablecoins? Tell us in the comment section below.<\/strong><\/em><\/p>\n

<\/p>\n

\n
\n<\/div>\n
\n
\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n