A representation of cryptocurrency Tether is placed on a PC motherboard, in this illustration taken June 16, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
BRASILIA (Reuters) - Brazil's net imports of crypto assets in the nine months through September 2024 increased by 60.7% over the same period last year, already exceeding the full-year total for 2023, central bank data showed on Tuesday.
The surge in Brazil's crypto market, the world's tenth-largest according to blockchain analytics firm Chainalysis, was fueled by a significant increase in so-called stablecoins - which are pegged to real-world assets like the U.S. dollar.
These stablecoins accounted for nearly 70% of all crypto transactions in the country this year, according to tax revenue service data.
Central bank chief Roberto Campos Neto recently said Brazil would regulate stablecoins in 2025. He previously noted that growing demand for stablecoins in Brazil was largely linked to tax evasion and illicit activities.
Central bank data, which does not differentiate between asset classes, showed that year-to-date net imports of crypto assets reached $12.9 billion in September, surpassing the $11.7 billion recorded for all of last year.
The head of the bank's statistics department, Fernando Rocha, highlighted that net imports continue to accelerate significantly year-over-year, though he noted a month-to-month decline.
In September, net imports of crypto assets totaled $1.4 billion, down from $1.5 billion in August.
"This doesn't necessarily mean they've peaked," he said.
Unlike Bitcoin and other crypto assets without a corresponding liability, and whose value fluctuates widely, stablecoins such as Tether (USDT) and Circle's USDC provide more stability, while also enabling rapid transfer anywhere in the world.
(Reporting by Marcela Ayres; Editing by David Holmes)
