Brazilian Tax Authority Reports Stablecoin Trading Growth
The Brazilian Tax Authority (RBF) recently published an article acknowledging the growth in stablecoin trading in the country, which has taken the Brazilian cryptocurrency market by storm. The most transacted stablecoin is Tether’s USDT, which has moved more than 271 billion reals (close to $54 billion) since the organization started registering these purchases in 2019.
The Brazilian tax authority (RBF) has recently reported "vertiginous growth" in the trading of stablecoins, tokens tied to the value of other currencies, in the country, surpassing the volumes of cryptocurrencies like BTC. The organization states that their characteristics make them "more stable in value," expanding the possibility of using them as a means of payment.
Brazilian Tax Authority Recognizes Tether's Dominance in the Market
The data received by the organization from exchanges that have to report their movements by law, puts Tether’s USDT, USDC, and BRZ, a Brazilian real-pegged stablecoin, as the most traded stablecoins in Brazil. However, USDT’s trading volumes are higher than the two others, being present in 80% of all the transactions in 2023.
The institution had reported previously that during the first two quarters of 2023, more than $18 billion were transacted using USDT, commanding more than 80% of the volume moved during that period.
The Brazilian tax authority confirmed USDT’s leadership in the Brazilian cryptocurrency market, stating that it might affect the future regulatory oversight of these assets. The institution stated:
"The trading of Bitcoin and other cryptocurrencies has been largely overtaken by the movement of stablecoins like Tether. This change deserves attention, as it could have significant implications for the tax and regulatory scenario for cryptocurrencies in the country."
According to the authority, since it started receiving reports in 2019, USDT transactions have reached more than 271 billion reals (close to $54 billion). USDT’s reported trading volumes overtook BTC in 2022, skyrocketing since July 2022.
Tether's CEO Comments on the Growth
Tether’s CEO Paolo Ardoino commented on the report, stating that the growth was natural due to the usefulness of USDT. On this, he declared:
"USDT adoption in Brazil is skyrocketing. When a product is useful for real, and solves RWP (real-world problems), it simply gets used."
In January, several Brazilian experts explained why Brazilians preferred stablecoins instead of dollars to hedge against devaluation and inflation. Jose Artur Ribeiro, CEO of Coinext, a national exchange, stated this was due to the lack of administration or performance fees and to the existence of a 24-hour live liquid market for negotiating these assets.
What do you think about the prevalence of Tether in the Brazilian cryptocurrency market? Tell us in the comment section below.
Frequently Asked Questions
Can I keep physical gold in an IRA?
Not only is gold paper currency, but it's also money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
One reason is that gold historically performs better than other assets during financial panics. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During turbulent market conditions gold was one of few assets that outperformed stock prices.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your stock portfolio can fall, but you will still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Gold provides liquidity. This allows you to sell your gold whenever you want, unlike many other investments. The liquidity of gold makes it a good investment. This allows one to take advantage short-term fluctuations within the gold price.
Should you Invest In Gold For Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. You can invest in both options if you aren't sure which option is best for you.
You can earn potential returns on your investment of gold. Retirement investors will find gold a worthy investment.
Although most investments promise a fixed rate of return, gold is more volatile than others. Therefore, its value is subject to change over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold? It's a tangible asset. Gold is less difficult to store than stocks or bonds. It is also easily portable.
As long as you keep your gold in a secure location, you can always access it. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold usually rises when stocks fall.
Gold investment has another advantage: You can sell it anytime. Like stocks, you can sell your position anytime you need cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
Don't purchase too much at once. Start with just a few drops. You can add more as you need.
The goal is not to become rich quick. It is to create enough wealth that you no longer have to depend on Social Security.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
How is gold taxed within a Roth IRA
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
You don't pay tax if you have the money in a traditional IRA/401k. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
Each state has its own rules regarding these accounts. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you up to April 1st. New York offers a waiting period of up to 70 1/2 years. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
How much of your portfolio should be in precious metals?
To answer this question we need to first define precious metals. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them extremely valuable for trading and investing. Gold is by far the most common precious metal traded today.
But, there are other types of precious metals available, including platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, the prices of precious metals do not always move in sync with one another. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors expect lower interest rates which makes bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They become less expensive and have a lower value because they are limited.
To maximize your profits when investing in precious metals, diversify across different precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
investopedia.com
bbb.org
finance.yahoo.com
cftc.gov
How To
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Due to its value, it was also internationally traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They sold some of their excess gold to Europe to pay off the debt.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries started to accept paper money as a substitute for gold after World War I. The gold price has gone up significantly in the years since. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: Sergio Goschenko
Title: Brazilian Tax Authority Acknowledges ‘Vertiginous Growth’ of Stablecoin Trading
Sourced From: news.bitcoin.com/brazilian-tax-authority-acknowledges-vertiginous-growth-of-stablecoin-trading/
Published Date: Wed, 01 Nov 2023 07:30:25 +0000
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