Tether declared that USDT would be usable in about 24,000 Brazilian ATMs from November 3, 2022.
Converting Tether to Brazilian reals and vice versa will be through local crypto services provider SmartPay. They will partner with the owner of the ATMs, TecBan, under the brand name, Banco24Horas.
SmartPay CEO explained that users could transfer USDT from any wallet – including exchanges – to an ATM. This gives them easy access to crypto.
Tether in Brazilian ATMs
Tether, the platform behind the biggest stablecoin ATM in Brazil, is a huge deal. Moreover, people can use it to convert their USDT to Brazilian Reals and vice versa.
Paolo Ardoino, the CTO of Tether, noted, “Adding Tether tokens to ATMs across Brazil provides the opportunity to include more people in the financial system.”
He added, “This will bring major changes to the payments industry and the entire Brazilian financial ecosystem.”
A crypto ATM enables people to get their fiat converted to crypto without hassle.
Stablecoins Adoption in Brazil Surges
Stablecoins, such as USDC and USDT, has been largely adopted in Brazil since 2020. In subsequent years, the usage by locals kept increasing.
The Brazilian tax authority said that between January and November 2021, $11.4 billion was traded — triple that of the former year. In August 2022, about 1.4 billion USDT was transacted across 79,836 operations, at an average of $18,000 per transaction.
On a continental scale, crypto adoption has risen by 40%, mostly due to remittance payments. In Argentina, Maker’s DAI is a leading stablecoin. In Mexico, Tether recently initiated its MXNT token pegged to the Peso.
The major reason for this adoption in Brazil is rising inflation. In 2021, the country’s inflation rate was 10.06%, the highest level since 2015 and the fourth-highest since 1994.
For many, acquiring stablecoins (USDT) enables them to hedge against the continual depreciation of the Brazilian Real against the U.S. dollar.
For others, it prevents them from paying a form of tax. Usually, when acquiring foreign currency, Brazilians are to pay a tax on financial operations — between 1.1% and 6.38%. This doesn’t pertain to stablecoins, however.
USDT has gained widespread adoption in Brazil, with its peculiarities benefiting the locals. Yet, surging prices and falling rates have prevented many from contributing to the country’s economy.
But with this progressive development of Tether in 24,000 ATMs, things are bound to get better.
If huge numbers were reported in August, one can only imagine how such figures would increase by November and beyond.