Brazilian Companies Turn to Stablecoins During Election to Avoid Currency Crash Risks

Brazilian companies are turning to stablecoins during the election period on October 25 to avoid the risk of local currency depreciation. Cryptocurrency exchange Mercado Bitcoin reported that corporate accounts contributed 78% of the trading volume on that day. On election day, the trading volume of USDT surged nearly 800% compared to the same day the previous week, more than three times the average of the previous four Sundays; Bitcoin trading volume increased by 865% compared to the previous Sunday. Data from Biscoint shows that the trading volume of USDT against the real increased by 150% compared to the previous Sunday, while USDC rose by 318%. Pedro Fontes, a research analyst at Mercado Bitcoin, stated that stablecoins like USDT and USDC provide a simple way to dollarize some assets. On Monday, Brazil's benchmark Ibovespa index plummeted by 14%, marking its worst performance since March 2020; the dollar rose over 8% against the real, the largest single-day increase since 1999. On Monday, the combined trading volume of USDT and USDC reached 1.84 billion reais (approximately 350 million USD), a 65% increase from the previous week.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.