Brazil has become one of the world’s biggest real-world experiments in digital dollars, with stablecoins now accounting for the majority of reported crypto activity in Latin America’s largest economy, according to the International Monetary Fund (IMF).
Digital Dollars Take the Lead
According to the IMF’s report, Brazil’s crypto market, especially USD-pegged stablecoins, has grown rapidly since 2017.
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The fund’s analysis found that cross-border crypto flows grew faster than traditional capital flows and nominal GDP when measured relative to economic activity, although crypto-related financial stability risks remain contained for now.
Brazilian authorities reported more than $200 billion in stablecoin transaction volume between August 2019 and December 2025, representing 71.7% of declared crypto activity during that period. In 2025, stablecoins accounted for around 80% of monthly declared crypto volume.
For comparison, Brazil’s real GDP expanded by roughly 20% cumulatively between 2017 and 2024.
The growth of stablecoins is unfolding against a broader transformation in Brazil’s financial system, where digital banking and Pix have already changed how millions of consumers move money.
The rise of digital banking and the massive adoption of the low-cost instant payment system Pix have dramatically reshaped Brazil’s financial landscape, boosting competition and driving up efficiency across the sector.
Emerging digital banks have increased competition in a market historically dominated by a small number of major financial institutions.
Why Global Regulators Are Watching
The IMF report flags that stablecoin flows are far more sensitive to global economic turbulence than traditional international investments.
Between one-third and two-thirds of the movement in stablecoin purchases is driven by outside financial forces—such as the VIX volatility index, S&P 500 swings, and Bitcoin price movements.
“While systemic financial stability risks related to crypto currently appear contained, the rapid growth of crypto activity, including stablecoins as one component, warrants close monitoring,” the IMF notes.
The IMF recommends stronger oversight of stablecoins, including clearer rules for custody, consumer protections, and coordination between regulators. The fund warns that relying solely on crypto companies to manage risks may not be sufficient as adoption expands.
Why This Matters
The findings arrive as Brazil’s Congress prepares to take up Bill 4308/2024, legislation aimed at formally regulating stablecoins.
The crypto industry has pushed back on parts of the bill, particularly its approach to stablecoin classification — a debate with echoes of the reserve-transparency and oversight questions US lawmakers have worked through in their own stablecoin legislation.
With crypto-related cross-border activity growing faster than traditional capital flows relative to economic activity and showing outsized sensitivity to dollar-market swings, the IMF’s assessment adds pressure on Brazilian lawmakers to advance the bill — and offers a preview of the compliance bar regulators expect issuers and platforms to meet.
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