"How Stablecoins Are Dollarizing Brazil’s Economy 💵🇧🇷"

Stablecoins have exploded in popularity in recent years along with the wider digital asset market. Notably, the stablecoin market is gaining prominence in emerging economies, such as Brazil and other Latin American countries.

Notably, Dollar Tether, USD Coin and other stablecoins are promoting a kind of silent dollarization in the Brazilian economy. Statistics on the adoption of stablecoins in the region reveal a growing interest in dollar-backed tokens.

Brazil and hyperinflation

Brazil and Latin American countries in general have a long history of inflationary crises. The country experienced several decades of high inflation and hyperinflation during the 20th century.

Because of this, investment in real estate, gold and dollars became popular over time. Brazil’s economic situation was stabilized by the Real Plan, which was implemented in 1994.

However, the risk of hyperinflation has once again plagued the Brazilian economy. In just one year, the Brazilian real fell by around 25% against the US dollar.

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