Brazil, 1 million crypto holders according to the FISC!

In accordance with Brazilian law, Brazil’s tax authority has revealed the number of citizens who declared their crypto assets in July 2022. The figures provided by the tax authority inform that more than one million Brazilians used crypto during that month.

July 2022, the milestone of one million crypto holders in Brazil is passed

The Brazilian Tax Authority (RFB) has released the figures on cryptocurrency usage declarations in July 2022. The data provided by the Brazilian Tax Authority shows a record number of declarations as well as a gradual feminization of the crypto ecosystem in the country.

For the first time in Brazil’s history, the milestone of one million monthly cryptocurrency users has been passed. And that’s without counting the undeclared accounts. Specifically, there were 1,336,715 citizens who declared their cryptocurrency holdings for July.

Never before has the country recorded such a high rate of monthly use of cryptos since a law came into force in 2019 requiring any holder of crypto-currencies to declare their assets to the tax authorities.

Furthermore, analysis of data provided by the Brazilian Tax Authority in recent months reveals a significant increase in monthly users of digital assets in Brazil. While in May 2022, only 365,789 Brazilians had declared their cryptocurrencies, this number has exploded in recent months. It reached 794,755 in June before doubling the following month. The data for August has not yet been compiled and published.

Brazilian citizens claiming to have crypto
Brazilian citizens claiming to have cryptocurrencies

The crypto ecosystem is becoming increasingly feminized in Brazil

In addition to the record number of declarations, it is also the number of women investing in cryptocurrencies that has caught the attention of observers. Indeed, data from Brazilian Tax Authory shows that as of July 2022, women accounted for 18.5% of crypto declarations in Brazil. Yet, only a month ago, women accounted for only 14%.

Percentage of men and women reporting having cryptocurrencies in Brazil
Percentage of men and women reporting having cryptocurrencies in Brazil

Particular appeal for bitcoin and stablecoins

The data also identifies the most used cryptocurrencies by Brazilians. In July 2022, the stablecoin Tether (USDT) was the most used crypto currency in crypto transactions in Brazil. It is followed by bitcoin, which is attracting more and more users in the country.

Brazil's favorite cryptocurrencies
Brazil8217s favorite cryptocurrencies

In Brazil, even though a formal regulation on cryptocurrency has yet to be approved by the national Congress, the crypto sector is growing rapidly. Through a 2019 normative instruction, the country has legalized the holding of digital assets and committed to promoting the crypto sector.

Beyond the growing adoption among the population, cryptocurrencies are also fascinating state services, some of which, like the Brazilian tax authorities, offer educational content to their agents. When we also see the positive news coming from Argentina, we realize that a wind of adoption of cryptocurrency is blowing over Latin America.