29 January 2023

Brazilian Companies Break Crypto Purchasing Records Again in October

brazilian tax authority records receita federal

According to the latest reports from the Brazilian tax authority (RFB), institutions have again broken crypto purchasing records in Brazil. The organization registered that almost 42,000 companies purchased some kind of cryptocurrency during October, a new record that overturns the 40,161 that declared having purchased crypto during September.

Brazilian Companies Purchase Crypto in Waves

More and more companies are introducing crypto as part of their treasuries in Brazil. According to the last data issued by the Brazilian tax authority (RBF), which is empowered by law to receive crypto purchasing statements from taxpayers, almost 42,000 companies bought some kind of cryptocurrency during October.

These 41,817 companies that purchased crypto broke the previous record number registered in September when 40,161 institutions also broke the previous record. However, the number of individuals that bought crypto during the same period fell to 1.265.818 from the almost 1.5 million citizens that purchased crypto back in September.

This new record suggests that institutions have been stockpiling as part of their treasuries taking advantage of the low prices that the market presents. The influence of the recent demise of FTX, one of the biggest cryptocurrency exchanges, on the trust of Brazilian customers in the cryptocurrency market is not clear yet, given that the numbers presented correspond to October.


USDT Remains at the Top, BRZ Rises

As in other opportunities, the reports also include data regarding the number of transactions registered and the amounts exchanged using each token. Following the trend of earlier months, Tether’s USDT, the dollar-pegged stablecoin, was the token used to settle more funds in Brazil in October. Almost $1.8 billion dollars were transacted using USDT in almost 119,366 operations.

This popularity is further enhanced by the functionality that third parties offer to connect USDT with the traditional financial system. On Oct. 22, Smartpay, a cryptocurrency service provider company, integrated its services with Tecban, a Brazilian ATM provider, to allow users to convert USDT to fiat currency in more than 24,000 ATMs.

However, bitcoin (BTC), still registered the highest number of transactions, with 1.34 million, in which $190.2 million were moved. A local real pegged stablecoin, BRZ, registered the second largest number of operations, with 693,086. These operations were made mainly on FTX, according to reports, and it is uncertain if this volume will be absorbed by other available markets. USDC, and ETH, all complete the top five currencies with the most volume settled.

What do you think about the record number of companies purchasing cryptocurrency in Brazil? Tell us in the comments section below.


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