Stablecoins account for 70% of Brazil’s exchange outflows

Stablecoin transaction value on Brazil’s local exchanges has far surpassed Bitcoin, reflecting the sharp increase in their use in B2B cross-border payments.

Brazil’s stablecoin market is thriving, with an annual growth rate exceeding 42%, making it the second fastest-growing region in Latin America, according to data from blockchain analysis firm Chainalysis.

The New York-based firm’s data shows that between July 2023 and June 2024, Brazil received approximately $90.3 billion in cryptocurrencies, with Argentina following close behind. While Bitcoin (BTC) remains popular, stablecoins have emerged as a preferred option on local exchanges due to demand for exposure to the US dollar due to local currency instability.

Countries by crypto value received | Source: Chainaliz

Chainalytics notes a 207.7% year-over-year increase in stablecoin transaction value on Brazilian exchanges, far outpacing other cryptocurrencies like Ethereum (ETH).

The firm explained that despite economic challenges such as the weakening of the Brazilian real and slowing growth, there are “opportunities for crypto growth, especially as regulators open their approach to the technology.” Chainalysis notes that stablecoins are poised to remain a dominant force in the country’s evolving crypto landscape, as exchanges like OKX and Coinbase continue to expand in Brazil.

But Latin America isn’t the only region where demand for stablecoins is soaring amid economic turbulence. As Crypto.news previously reported, stablecoins have emerged as a vital component of Sub-Saharan Africa’s crypto economy, accounting for approximately 43% of the region’s total transaction volume.

Ethiopia, Africa’s second most populous country, has seen retail-sized stablecoin transfers rise 180% year over year, fueled by a recent 30% devaluation of the local currency birr.