Brazilians’ Adoption of Crypto Grows Rapidly as Trading Activity Increases

Bitcoin crypto currency Brazil flag A lot of falling gold bitcoins Rain of golden coins fall to the palms of the hands on Federative Republic of Brazil waving flag background
  • Brazil’s GDP of US$1.92 trillion and a population of 218 million make it Latin America’s largest economy with growing crypto integration.
  • Crypto usage among Brazilians is increasing, with trading volumes rising faster than in the United States.
  • Brazilians show a strong preference for stablecoins, seeking USD stability amid local currency fluctuations.

With a population of 218 million Brazil is Latin America’s largest economy, with a GDP of US$1.92 trillion (AU$2.9 trillion) in 2022. Brazilians are increasingly using crypto in their daily activities, reflecting their growing preference for the technology.

According to the Crypto Council for Innovation, 8% of the population have used crypto and this seems to be increasing.

Related: Major Banks in France, Canada, Switzerland Report Exposure to Bitcoin ETFs

So much so that data from research firm Kaiko, shared with CNA, shows that trading volumes are now growing faster than in the United States – a country with over 100 million more inhabitants and a much higher GDP at US$25.4 trillion (AU$38.5 trillion).


The analysts at Kaiko stated that despite the current market correction, trading volume in Brazilian Real (BRL) is up 30%.

BRL weekly trading volume, source: Kaiko

Brazilians Prefer Stablecoins for USD Exposure

Kaiko data shows that from January to early May 2024, BRL-denominated crypto trading volume hit US$6 billion (AU$9 billion), making Brazil the largest market in Latin America and ranking it 7th globally among fiat currencies. In comparison, the Mexican Peso (MXN) reached US$3.7 billion (AU$5.6 billion) and the Argentine Peso (ARS) about US$300 million (AU$454 million) in the same period, the analysts wrote.

Notably, nearly half of the BRL trades were in stablecoins, with USDT’s share increasing by nearly 20% since the 2021 bull market, predominantly at the expense of altcoins. This shift indicates a strong preference for stablecoins over Bitcoin and other altcoins among Brazilians.

Stablecoins provide a stable value tied to the USD, offering a hedge against local currency volatility and inflation. This makes them particularly appealing in regions where local currencies can be unstable or depreciate quickly.

Additionally, stablecoins often facilitate smoother and quicker international transactions compared to traditional banking systems.

Bitcoin and Ethereum Still Dominate BRL Trade

Further, Kaiko notes that BTC and ETH together constitute 43% of BRL trade volumes, compared to over 70% in USD trades, indicating a lower relative preference for these major cryptocurrencies in Brazil.

BRL volume share, source: Kaiko

Meanwhile, Binance remains the dominant player in the BRL market with a 79% share, though its market dominance has been showing signs of decline, Kaiko added.

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Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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