Stablecoin Nation: 90% of Brazil’s Crypto Transactions Are Now Dollar-Pegged

• Stablecoins account for over 90% of Brazil’s flows, supported by banks like Itaú, Nubank, and Mercado Pago.
• Finance Minister Haddad confirms Drex CBDC seeks financial efficiency and transparency, rejecting claims of state surveillance or control.

A report from the blockchain analysis company Chainalysis, provided in early October 2024, offers a clear view of cryptocurrency activity across Latin America. The data shows Brazil with a commanding position in the region. From July 2024 to June 2025, the total value of cryptocurrencies received in Brazil reached $318.8 billion. This volume accounts for almost one-third of all regional crypto activity, establishing a considerable gap between Brazil and other countries in the area.

The broader Latin American market experiences growth in stablecoin asset adoption, influenced by common economic pressures. Nations face ongoing inflation, unstable local currency values, and government restrictions on moving money across borders.

These conditions create a practical need for financial alternatives, leading many users to stablecoins. People and businesses utilize these dollar-referenced digital currencies to protect their savings from devaluation and to conduct payments that cross international lines.

A Detailed Look at Regional Transaction Volumes

The scale of Brazil’s activity becomes fully apparent when placed alongside its regional counterparts. Argentina holds the second position, with a total received value of $93.9 billion. However, this figure is less than a third of Brazil’s volume. Mexico follows in third place with $71.2 billion in crypto value received. The fourth and fifth positions belong to Venezuela and Colombia, with $44.6 billion and $44.2 billion, respectively.

Other markets in the region register lower volumes, though they still contribute to the regional total. Peru recorded $28 billion in received cryptocurrency value. Chile’s market saw $23.8 billion, while Bolivia’s activity reached $14.8 billion. El Salvador, a country known for adopting Bitcoin as legal tender, registered a comparatively smaller volume of $3.5 billion during the same one-year period.

The Speed of Growth and Regulatory Foundations in Brazil

The country’s year-over-year growth rate for the period from 2024 to 2025 was measured at 109.9%. This rate of increase places Brazil among the world’s fastest-growing crypto markets. CNF analysts associate part of this growth with the establishment of a formal regulatory structure.

The legal framework, known as the Virtual Assets Law or BVAL, came into effect during 2022 and 2023. This law set out specific rules for companies operating with digital assets. These rules include mandatory customer identification checks and reporting requirements for certain transactions. The legislation also gave the Central Bank of Brazil clear authority over monitoring these companies for money laundering and terrorist financing risks.

Large transfers, often from institutional participants, were the primary force behind the market’s expansion, showing increases of over 100% compared to the previous year. Nevertheless, data from Chainalysis indicates that growth occurred across the board. All segments of the market, categorized by transaction size, showed substantial upward movement.

Stablecoins Become the Focal Point for Users

Reports from Brazilian authorities indicate that more than 90% of all cryptocurrency flows in the country now involve these assets.

The entry of well-known financial firms has provided further momentum to the market. Regulatory actions by the Central Bank of Brazil helped create conditions that allowed larger institutions to participate. Consequently, traditional banks such as Itaú and digital banking platforms like Mercado Pago and Nubank have started offering crypto-related services.

Brazil also shows the strongest growth in a key area: converting local currency into crypto assets. This activity grew more in Brazil than in neighboring countries. Argentina and Mexico, for instance, saw relatively stable levels in their fiat-to-crypto transactions. Colombia experienced more variation, with levels that rose and fell more frequently.

Long-Term Expansion of the Latin American Crypto Market

Reviewing a longer timeframe, from July 2022 to June 2025, reveals a consistent upward trend for the entire region. Latin America recorded a combined transaction volume of nearly $1.5 trillion in cryptocurrency during these three years. This level of activity positions Latin America as one of the most active crypto markets globally.

The regional transaction volume began at $20.8 billion in July 2022. It then rose to a peak of $87.7 billion in December 2024. A cooling-off period occurred in the first half of 2025, with volume settling at $47.9 billion by June. Even after this moderation, the base level of activity remains far higher than it was in 2022 or 2023, indicating that adoption has become more established.

A clear connection exists between this sustained growth and the popularity of stablecoins. For the Colombian peso, the Argentine peso, and the Brazilian real, these digital assets made up over 50% of all purchases on exchanges between July 2024 and June 2025.

Key Objectives of the Drex CBDC

Brazil’s Finance Minister, Fernando Haddad, has outlined the core objectives behind the nation’s upcoming central bank digital currency (CBDC), known as Drex. In a recent podcast appearance, Haddad provided clarity on the government’s vision for the digital real, emphasizing its role in enhancing the financial system. He specifically addressed public concerns regarding potential state oversight of user funds.

When directly questioned on the podcast about the potential for control, Haddad offered a clear distinction. He explained that the system is built for transparency in its processes, not for exerting control over users.

The minister firmly rejected the idea that the current administration intends to use Drex as a tool for monitoring citizen transactions. He stated that the primary purpose of the tokenized Drex system is to simplify and improve financial operations for the public. The design focus is on enabling smoother and more accessible transactions, not on surveilling payment activities.