Brazil’s crypto boom reshapes digital payments
Stablecoins now drive 90% of Brazil’s crypto flows, transforming how people send, spend, and store value

Cash is no longer king in Brazil’s digital economy. Stablecoins now dominate 90% of crypto transactions, marking a shift from speculative trading to real-world use. With a growing number of Brazilians turning to digital assets for payments and cross-border purchases, crypto is becoming an essential part of the country’s financial landscape.
Why stablecoins are driving Brazil’s crypto growth
Brazil’s central bank has confirmed the trend: stablecoins now account for the vast majority of crypto transaction flows. These digital assets, pegged to traditional currencies like the US dollar, offer a practical alternative to volatile cryptocurrencies.
Paolo Ardoino, CEO of Tether, previously highlighted this shift, stating, “In the first quarter of 2023, USDT dominated cryptocurrency and stablecoin transactions in Brazil, with a total of 37.1 billion reais ($6.3 billion), which represents 81% of the total value traded in cryptocurrencies and stablecoins through the first quarter.”
Ardoino noted that while Brazilian banks remain trusted institutions, more residents are using Tether (USDT) adoption in Brazil to access the financial system quickly and efficiently. Stablecoins provide a hedge against inflation, allow for seamless digital transactions, and are increasingly used for remittances and online purchases.
The rise of stablecoins has also caught the attention of global crypto firms. In May 2024, Circle launched USDC in Brazil, citing a favorable regulatory environment. A spokesperson for the company stated, “Circle’s engagement in Brazil comes at a time of increased regulatory certainty resulting from pro-innovation crypto regulation in Brazil.”
How crypto payments are reshaping Brazil’s economy
Brazil’s shift toward crypto isn’t just about investment—it’s about everyday spending. Gabriel Galipolo, chief of Brazil’s central bank, recently addressed this growing trend at a Bank for International Settlements event in Mexico City.
“Most of that is to buy things and to shop things from abroad,” he explained, referring to stablecoin transactions. Many Brazilians are now using crypto for cross-border payments, as stablecoins provide a faster and more cost-effective way to pay for goods and services internationally.
However, this growing adoption has raised concerns. Galipolo warned that while crypto payments offer convenience, they could also obscure taxation and money laundering oversight. “Using crypto for these purposes also maintains some kind of opaque vision for taxation or money laundering,” he noted.
At the same time, Brazil’s rapid embrace of digital assets is sparking discussions on how traditional banking institutions will adapt. With stablecoins becoming a preferred financial tool, banks may need to integrate digital assets into their services or risk losing relevance in an evolving financial landscape.
Drex vs. stablecoins: What’s next for Brazil’s digital finance?
As stablecoins take center stage, Brazil’s central bank is moving forward with its own digital currency: Drex. Unlike privately issued stablecoins, Drex is part of the Banco Central do Brasil’s official digital platform and is fully backed by the government.
The BCB describes Drex as a central bank digital currency (CBDC)—a digital version of the Brazilian real, designed to be a secure and accessible form of government-issued money. Unlike decentralized cryptocurrencies, CBDCs are fully regulated, providing a reliable option for digital payments and cross-border transactions.
While Brazil’s digital currency aims to modernize the financial system, concerns remain. Critics warn that CBDCs could lead to increased financial surveillance, as central banks would have the ability to monitor all transactions. Additionally, implementing Drex on a national scale will require significant investment in digital infrastructure.
Despite these challenges, central bank chief Galipolo argues that Drex is not just another CBDC. Instead, he describes it as a system designed to expand credit access by allowing assets to be used as collateral—a potential game-changer in a country where borrowing costs remain high due to limited guarantees.
Drex will also integrate distributed ledger technology (DLT) to facilitate wholesale interbank transactions, increasing efficiency in the financial sector. For retail users, Drex access will be based on tokenized bank deposits, allowing banks to issue digital versions of traditional money.
With stablecoins surging and Drex on the horizon, Brazil’s fintech growth is accelerating. Whether this shift leads to broader financial inclusion or regulatory challenges remains to be seen, but one thing is clear: Brazil is becoming a leader in the digital finance revolution.