Stablecoin Trading Soars in Brazil Amidst Tax Changes

Trading volumes for digital dollars, specifically USDT and USDC (known as stablecoins), have surged in Brazil. According to data from Bitybank, a leading Brazilian cryptocurrency bank, trading volume increased by over 160% in the first quarter of 2025 compared to the same period in 2024. This significant growth is driven by several factors, primarily the ease of holding assets in strong currencies like the US dollar or Euro and the speed of international transfers.

A new tax on financial operations (IOF) implemented by the government has further boosted the appeal of stablecoins. In addition to their inherent speed and ease of use, stablecoins now offer a cost advantage, as these taxes do not directly apply to the use of these crypto assets. This is a major benefit for businesses and individuals alike.

Traditional international remittances through banks typically take one to two days to reach the recipient. Cryptocurrency transfers, on the other hand, take only minutes and can be executed even on weekends or in the middle of the night. This speed translates into significant cost savings for businesses by reducing expenses related to product storage awaiting payment, daily loan interest, or penalties for late payments.

The increased IOF rates are prompting businesses to adopt stablecoin technology to mitigate the impact of the new tax, potentially reducing it tenfold. The tax increase also affects individuals, making international travel, foreign courses, streaming services, global work platforms, and even sending money to relatives abroad more expensive. The new 3.5% tax directly impacts these everyday transactions.

“This IOF increase will directly impact small and medium-sized entrepreneurs, freelancers, tourists, and anyone who needs to pay or receive money from abroad. This government move pushes people towards alternative solutions like stablecoins, which become increasingly attractive due to their efficiency and low cost,” warns Ney Pimenta of Bitybank.

Ton Marques, product leader at Bitybank, explains, “With the increased demand for stablecoins, we have accelerated the development of several products aimed at this audience. We offer everything from a credit card that allows payments directly with digital dollars to a system that searches for the best price of USDT and USDC across dozens of liquidity providers, ensuring that the client can buy or sell at the best offer, even when they need large volumes, as typically required by large companies.”

Even traditional banks like Bradesco have recently acknowledged the inevitability of stablecoin adoption. Roberto Medeiros, director of the foreign exchange area at the bank, stated, “The big gain we envision with stablecoins is operational. It brings greater efficiency, and we expect a better cost for everyone.”

Bárbara Rocha, marketing director at Bitybank, concludes, “Crypto assets have ceased to be just an investment alternative and have become a real tool for asset protection and financial freedom. Offering simple, secure, and accessible solutions for people’s daily lives is what drives us to bring the crypto-economy to the reality of Brazilians.”

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