Tether (USDT) has accounted for 80% of all cryptocurrency transactions in Brazil in 2023, indicating a significant rise in adoption, according to data from Brazil's revenue service agency.
USDT transactions amounted to $BRL271 billion, which is approximately $US55 billion, nearly double the amount of Bitcoin transactions at around $US30 billion.
Cryptocurrency transactions have been increasing in the country since 2021, with USDT surpassing BTC for the first time in July 2022.
However, the crypto winter of 2022 resulted in a decrease of nearly 25% in the volume of crypto transactions, reaching approximately $US31 billion.
Brazil's tax agency monitors crypto-related activities using an advanced system that employs AI and network analysis. The system helps detect suspicious activities and track the whereabouts of cryptocurrency traders. The Brazilian government is also targeting citizens' crypto investments held overseas.
In October 2023, a legislation has been passed to recognise cryptocurrencies as financial assets for tax purposes on foreign investments.