Brazilians Are Moving Towards Dollar-Pegged Stablecoins As Alternatives to the Ailing Economy

Brazil is moving to dollar-backed stablecoins as the country's economy continues to ail coupled with the looming uncertainty on its increasing COVID-19 cases. According to a Binance Brazil Representative, Mayra Siqueira, stablecoin traders have quadrupled since the year began with the USDT and BNB tokens dominating the market.

Similar sentiments were shared by other stakeholders operating in the Brazil crypto market. Notable mentions include Fabio Canesin, the co-founder of Nash Exchange, who said that his DEX recorded around $12 million in USDT volume within the past month. As per Fabio's estimates, close to 8,000 users who facilitated this liquidity were Brazilians.

Instead of a Bitcoin maximalism, Brazil seems to lean more towards dollar-denominated stablecoins as a hedge of their ailing economy. Fabio emphasized that an emerging dollarization trend and access to smart contract infrastructure is further pushing the adoption of stablecoins,

“We have a trend of dollarization…so of course having stablecoin access is interesting for … access to smart contracts for more stable savings.”

Currently, there are over five local stablecoin projects within Brazil, a number that could soon double if the current market trend persists. Libra’s rival, Celo, is looking to initiate a real Brazilian stablecoin following a proposal to its community last month. Fernando Bresslau, a blockchain and Celo advocate in Brazil, confirmed this prospect,

“We’re serious about making something with Celo that makes sense for the local market.”

Other local real stablecoin initiatives include an ERC-20 token by Bolsa Cripto exchange set to launch later in the year. Notably, this crypto exchange supports the dollar-backed PAX stablecoin despite a low activity within its network. The firm's co-founder, John Willock, said that they are looking for more stablecoin options that will make sense to the Brazilian economy,

“Stablecoins, more than anything else, are all about the distribution strategy. … We’ve been looking to other issuers of stablecoins to see how they would like to make these assets more available.”

Willock went on to further note that there will be demand for both dollar-pegged and local stablecoins. Consequently, the market will decide over time which digital assets present more value hence possible mass scale adoption. Nonetheless, Brazil's conservative nature when it comes to their local currency might slow down this process according to Teixeira and Bresslau,

“Even though we have a deep trauma with hyperinflation in Brazil, especially in the 1980s and 1990s, it’s not a part of our culture to have the economy in dollar terms. Unlike Argentina.”

Also Read: Binance Banned from Offering Crypto Derivatives in Brazil

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today