USDT’s Dominance in Brazil, Accusations Against Bukele’s Administration, and a New Venezuelan Crypto Association

B. Ali
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In Brazil, the national cryptocurrency market is experiencing a surge in the use of stablecoins such as USDT, USDC, and BRZ, which are tokens tied to the Brazilian real. These stablecoins are rapidly gaining popularity and are now integral to the majority of cryptocurrency transactions, as reported by the Brazilian Tax Authority (RBF).

Meanwhile, El Salvador’s President, Nayib Bukele, is facing scrutiny for purportedly diverting funds from their intended purposes to finance Bitcoin-related projects. This has sparked concerns and discussions regarding the government’s utilization of cryptocurrencies in the country.

In Venezuela, cryptocurrency exchanges have united to establish a new association. This collective initiative aims to improve transparency and cooperation within the industry, potentially fostering growth and stability in the Venezuelan crypto market.

These developments illuminate the evolving crypto landscape in Latin America, with stablecoins gaining ground in Brazil, controversies surrounding Bitcoin in El Salvador, and collaboration among Venezuelan exchanges taking the spotlight.

Brazilian Tax Authority Observes Surge in Stablecoin Use, With USDT Leading the Way

The Brazilian Tax Authority, RBF, has acknowledged the escalating presence of stablecoins in the Brazilian crypto market. They have emphasized the potential impact of this trend on tax and regulatory concerns. Tether’s USDT, the largest stablecoin globally, has emerged as a key player in Brazil, being engaged in over 80% of crypto transactions in 2023. It has facilitated more than 271 billion reals (approximately $54 billion) in transactions since RBF began monitoring in 2019.

Tether’s CEO, Paolo Ardoino, has recognized the substantial surge in USDT adoption in Brazil, crediting it to the practical utility of the product in solving real-world issues. This development underscores the increasing importance of stablecoins in Brazil’s crypto ecosystem and their role in addressing practical challenges.

Allegations of Misused Funds: Salvadoran Government and Bitcoin Initiative

A recent investigation conducted by the Organized Crime and Corruption Reporting Project (OCCRP) has raised concerns about the Salvadoran government under President Nayib Bukele’s leadership.

Allegations suggest that out of a $600 million COVID-19 relief loan from the Central American Bank for Economic Integration (CABEI) in 2021, approximately $425 million was diverted to cover other state obligations.

A substantial portion, exceeding $200 million from these funds, supposedly went towards supporting the initiative to establish Bitcoin as legal tender in El Salvador.

This report has triggered controversy, indicating a diversion of pandemic relief funds for purposes beyond their intended use, thereby raising questions about the allocation and utilization of funds in the country.

Venezuelan Crypto Exchanges Unite to Revive Industry Amid Regulatory Challenges

A consortium comprising prominent Venezuelan cryptocurrency exchanges such as Cryptobuyer, AFX, Amberes Coin, and Crixto, has joined forces to create Acincrip, a new association.

Their goal is to tackle the challenges arising from a seven-month shutdown of the national crypto industry, triggered by the intervention of Venezuela’s cryptocurrency regulator, Sunacrip, and the arrest of its former chief, Joselit Ramirez.

Acincrip has participated in Sunacrip’s investigations but has not revealed specific actions for formalizing the country’s crypto market. This collaborative initiative among leading exchanges signifies a shared determination to navigate the regulatory terrain and revitalize the Venezuelan crypto industry.

The establishment of this association mirrors the industry’s call for cooperation and transparency amidst regulatory uncertainties and setbacks.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.