Brazilians have bought and sold $ 6.3 billion bitcoin, according to their IRS.
Trading providers have been required to provide details to the Brazilian Federal Tax Authority (RFB) since August 2019.
This data has now been compiled in a public report by RFB, which lists the volumes by cryptocurrency per month
From January to September 2020, a total of 33 billion Brazilian Reals, worth around 6.3 billion US dollars, were traded.
Most of it is in Bitcoin and Eth, but the Brazilian Treasury also lists trading in Dai and Doge:
The first column is the cryptocurrency, then the month, then the number of actions / transactions, then the total and then the average total.
This includes data from over the counter (OTC) trading venues, of which there are nine large ones in Brazil: Transfero, Foxbit, Novadax, Escher, Nox, Red River, BitBlue, BitPreço, and OWS.
“These are investors who are looking for diversification, often leaving the traditional market, having completed financial investments with traditional banks and brokers and now coming to buy their first bitcoin. This customer profile prefers the OTC trade, ”explains Foxbit CEO João Canhada.
According to crypto exchange Foxbit, OTC trade accounts for 40% of its sales, with Brazil rising overall as a hotspot for bitcoin trading
They are the ninth largest economy in the world with a GDP of $ 1.8 trillion. They have inflation at 4.3% – and more importantly, the country stands next to hyperinflationary Venezuela and Argentina, where inflation is galloping.
Bitcoin is also particularly useful for trading outside the official channels, especially with China, as the currency can be moved in seconds, which shortens processing times for mail order.
The country also has a long history of capital controls, which could be an obstacle for small businesses. However, your government is generally friendly towards the industry and even tried to tokenize the real with its state bank in 2018.