The Brazilian Tax Authority (RBF) has recently acknowledged the significant growth in stablecoin trading in the country's cryptocurrency market. Stablecoins, which are tokens tied to the value of other currencies, have gained popularity due to their stability in value and potential use as a means of payment.
USDT Dominance in the Brazilian Market
Tether's USDT is the most transacted stablecoin in Brazil, surpassing the volumes of other cryptocurrencies like BTC. According to data received by the RBF from exchanges, USDT, USDC, and BRZ (a Brazilian real-pegged stablecoin) are the most traded stablecoins in the country. However, USDT stands out with higher trading volumes, accounting for 80% of all transactions in 2023.
Implications for Regulatory Oversight
The Brazilian tax authority has confirmed USDT's leadership in the Brazilian cryptocurrency market and highlighted the potential impact on future regulatory oversight. The institution recognizes that the trading of stablecoins like Tether has overshadowed Bitcoin and other cryptocurrencies. This shift in trading patterns could have significant implications for the tax and regulatory scenario for cryptocurrencies in Brazil.
USDT's Trading Volume and Growth
Since the RBF started receiving reports in 2019, USDT transactions have reached over 271 billion reals (approximately $54 billion). USDT's trading volumes surpassed BTC in 2022 and have been skyrocketing since July of that year.
USDT's Usefulness and Adoption in Brazil
Tether's CEO, Paolo Ardoino, attributes the growth of USDT in Brazil to its usefulness in solving real-world problems. He believes that when a product is genuinely useful and addresses users' needs, it naturally gains adoption. The preference for stablecoins over dollars among Brazilians is also attributed to the lack of administration or performance fees and the existence of a 24-hour live liquid market for trading these assets.
The growth of stablecoin trading, particularly Tether's USDT, has had a significant impact on the Brazilian cryptocurrency market. The dominance of USDT raises important considerations for tax and regulatory authorities in Brazil. As stablecoins continue to gain popularity, it is crucial for regulators to adapt and establish appropriate frameworks to govern these assets effectively.
What are your thoughts on the prevalence of Tether in the Brazilian cryptocurrency market? Share your opinions in the comment section below.
Frequently Asked Questions
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Experts think this could change quickly. According to them, gold prices could soar if there is another financial crisis.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
These are some things you should consider when considering gold investing.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save for retirement and not invest your savings in gold. The added protection that gold provides when you retire is a good option.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each account offers different levels of security and flexibility.
- Remember that gold is not as safe as a bank account. It is possible to lose your gold coins.
Do your research before you buy gold. And if you already own gold, ensure you're doing everything possible to protect it.
How can I withdraw from a Precious metal IRA?
First, determine if you would like to withdraw money directly from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option will require you to pay taxes on the amount that you withdraw.
Next, determine how much money you plan to withdraw from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before you choose one, weigh the pros and cons.
Because you don't have to store individual coins, bullion bars take up less space than other items. However, you'll need to count every coin individually. On the flip side, storing individual coins allows you to easily track their value.
Some people prefer to keep coins safe in a vault. Others prefer to place them in safe deposit boxes. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
Are gold investments a good idea for an IRA?
Gold is an excellent investment for any person who wants to save money. You can also diversify your portfolio by investing in gold. But there is more to gold than meets the eye.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the most ancient currency in the universe.”
Gold is not created by governments, but it is extracted from the earth. That makes it very valuable because it's rare and hard to create.
The supply and demand factors determine how much gold is worth. The economy that is strong tends to be more affluent, which means there are less gold miners. The value of gold rises as a consequence.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This causes more gold to be produced, which lowers its value.
This is why it makes sense to invest in gold for individuals and companies. If you have gold to invest, you will reap the rewards when the economy expands.
Your investments will also generate interest, which can help you increase your wealth. You won't lose your money if gold prices drop.
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Investing gold vs. stocks
Gold investing as an investment vehicle can seem extremely risky these days. This is because most people believe that it is no longer economically profitable to invest gold. This belief is based on the fact that gold prices are being driven down by global economic conditions. They believe they would lose their money if they invested gold. However, investing in gold can still provide significant benefits. Below we'll look at some of them.
One of the oldest currencies known to man is gold. Its use can be traced back to thousands of years ago. People around the world have used it as a store of value. As a means of payment, South Africa and many other countries still rely on it.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. So, although gold prices have declined in recent years, the cost of producing it has not changed.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. But, if your goal is to make long-term investments in gold, this might be worth considering. Selling your gold at a higher value than what you bought can help you make money.
We hope this article has given you an improved understanding of gold investment tools. It is important to research all options before you make any decision. Only then will you be able to make an informed decision.
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