The International Monetary Fund has said Brazil’s financial system remains resilient even as cryptocurrency adoption surged sharply during 2025.
New IMF research noted that Brazil’s tight monetary policy, with the Selic rate holding at 15%, has not undermined credit markets or financial stability.
According to the IMF, recent credit expansion in Brazil was not a policy failure despite elevated interest rates
IMF research shows that the recent credit expansion in Brazil, amid a basic interest rate of 15%, was not a policy failure.
The IMF said.
Bank lending in Brazil increased by 11.5% in 2024, while corporate bond issuance rose by 30%, signalling continued access to capital.
Conventional macroeconomic theory would normally suggest such conditions reduce demand for alternative financial assets.
Instead, Brazil’s cryptocurrency activity increased by 43% year on year in 2025, defying traditional expectations.
The IMF’s Article IV consultation said Brazil’s central bank has effectively managed inflation expectations and credit transmission.
Strong income growth, low unemployment and fintech expansion helped sustain borrowing despite restrictive policy settings.
Digital banks and fintech firms now account for roughly 25% of Brazil’s credit card market, broadening access to financial services.
Crypto adoption has risen alongside this system rather than in opposition to it, according to analysts.
Data from Mercado Bitcoin shows younger investors are leading the trend, with adoption among users aged 24 and under rising 56% year on year.
The growth has been driven primarily by stablecoins and tokenised fixed-income products rather than speculative altcoins.
Digital fixed-income products generated approximately $325 million in returns during 2025.
Overall crypto transaction volumes rose 43%, while lower-risk crypto products expanded by 108%.
Bitcoin remains the most widely traded cryptocurrency in Brazil, followed by Ethereum and Solana.
Middle-income users are allocating portfolios to stablecoins, while lower-income investors favour Bitcoin for higher return potential.
Traditional institutions are responding, with Itaú Unibanco. recommending a 1% to 3% Bitcoin allocation as a diversification tool.
Analysts say Brazil’s experience shows crypto can grow even when monetary policy is functioning as intended.
At the time of reporting, Bitcoin price was $87,779.72.