🌎 Stablecoin Transaction Value Surges on Brazil’s Crypto Exchanges

Stablecoin Transaction Value Surges on Brazil’s Local Crypto Exchanges

In a notable shift, the stablecoin transaction value on local exchanges in Brazil has significantly surpassed that of Bitcoin. This trend highlights a growing preference for stablecoins in B2B cross-border payments.

The Brazilian stablecoin market is flourishing as Latin America emerges as the second-fastest-growing region in the cryptocurrency sector, with an impressive year-over-year growth rate exceeding 42%. According to data from blockchain analytics firm Chainalysis, Brazil received nearly $90.3 billion in cryptocurrency from July 2023 to June 2024, closely trailing Argentina.

While Bitcoin remains a popular choice, stablecoins have become the preferred option on local exchanges. This shift is largely driven by a growing demand for U.S. dollar exposure amid the instability of the local currency.

Rising Stablecoin Transactions in Brazil

Chainalysis reports a staggering 207.7% year-over-year increase in stablecoin transaction value on Brazilian exchanges, significantly outpacing other cryptocurrencies such as Ethereum. Despite economic challenges like a weakening Brazilian real and slowing growth, there are still opportunities for crypto expansion, especially as regulators adopt a more open approach to the technology.

Expanding Crypto Exchanges

Major exchanges like OKX and Coinbase are expanding their operations in Brazil, positioning stablecoins to remain a dominant force in the country’s evolving crypto landscape. This growth underscores the increasing importance of stablecoins in Brazil’s financial ecosystem.

Stablecoins in Latin America and Beyond

Latin America is not the only region experiencing a boom in stablecoin demand amid economic turbulence. In Sub-Saharan Africa, stablecoins have become a crucial component of the crypto economy, accounting for approximately 43% of the region’s total transaction volume.

For instance, Ethiopia, Africa’s second-most populous nation, has seen retail-sized stablecoin transfers grow by 180% year-over-year. This surge is largely fueled by a recent 30% devaluation of its local currency, the birr.