Brazil sees a record number of cryptocurrency holdings

The number of Brazilian organizations declaring cryptocurrencies on their balance sheet grew by 6.1% month-over-month, with the most popular assets being Bitcoin and USD Coin.

Digital map of South America

Receita Federal do Brasil (RFB), the Brazilian tax institution, reported a record number of organizations using cryptocurrencies. According to the released figures, 12,053 companies or institutions admitted to owning cryptocurrencies on their balance sheets in August.

It is the highest number to date and an increase of 6.1% compared to July, when 11,360 companies declared ownership of crypto assets. On the other hand, the number of individual cryptocurrency owners dropped by 35,000. Still, over 1,300,000 taxpayers admitted to owning some cryptocurrency.

The most popular currency for transactions in Brazil is Bitcoin, with 2.1 million transfers and an average transfer amount of $130. However, in terms of volume, the winner is USDT. The dollar-pegged stablecoin scored $1.4 billion in total transaction value split across 79,836 transfers ($18,000 on average).

Read also: Brazil legalizes crypto as payment method, no legal tender status

Other top-traded currencies include USD Coin (USDC), ETH, and Brazilian Digital Token (BRZ). The first one is pegged 1:1 to the value of the U.S. dollar. The latter, also a stablecoin, is pegged to the Brazilian Real. In May last year, it became the largest stablecoin tied to a non-dollar national currency.

The figures released by RFB indicate that cryptocurrencies are gaining popularity in Brazil. The trend is partially explained by the high inflation rate, but it also results from the “organic” growth of interest in cryptographic money.

According to the recent Bitstamp survey, in most of the Americas, the level of trust in cryptocurrencies remains high, with Brazil having reached impressive 77% of positive responses.