How stablecoins are dollarizing Brazil’s economy
Stablecoins have surged in popularity, particularly in emerging economies like Brazil, where they are facilitating a form of silent dollarization. The Brazilian economy, historically plagued by inflation and hyperinflation, is seeing increased adoption of dollar-backed tokens such as Dollar Tether and USD Coin. In July 2024, 4.1 million individuals in Brazil registered transactions with digital assets, with Dollar Tether accounting for over 90% of these trades. A survey indicated that 26 million Brazilians, about 7.8% of the population, are investing in digital assets. USDT transactions reached 37.1 billion reais in early 2023, representing 81% of total cryptocurrency transactions. Partnerships enabling USDT access at ATMs are enhancing financial accessibility. The rise of stablecoins is positively impacting the US economy by monetizing federal debt but also contributing to the depreciation of the Brazilian real as residents exchange local currency for digital dollars.
