Brazil Firms Use Dollar Stablecoins for Tax-Free Settlements

Companies in Brazil are using dollar‑pegged stablecoins for business‑to‑business and cross‑border payments to avoid the country’s financial transaction tax on conventional fiat transfers. Firms say stablecoins speed up settlement and ease payments where local cash is scarce.

Carlos Russo, chief executive of blockchain infrastructure provider Bloquo, noted the firm mainly serves banks, brokerages and other companies that convert currency into stablecoins to settle corporate transactions. He said many international travel agencies in Brazil now use stablecoins to pay suppliers and partners. He also highlighted settlements with neighboring countries such as Bolivia, where dollars in cash are limited, and said: “There are no dollars in Bolivia. Stablecoins have become the solution.”

Trading volumes for stablecoins rose in December, reaching 29.4 billion reais, according to Bloquo. Executives and market participants describe the flows as concentrated in B2B activity rather than retail speculation, with use cases including supplier payments, bilateral settlements and payrolls for cross‑border teams.

The tax difference between fiat transfers and stablecoin movements is a central factor in adoption. Conventional fiat transactions in Brazil are subject to a financial transaction tax, while stablecoin transfers have so far been conducted without that levy. That gap has driven companies outside the cryptocurrency sector to adopt stablecoins for some corporate payments.

The federal government had proposed a 3.5% tax on stablecoin movements with an exemption for users who move less than 10,000 reais per month. The proposal drew pushback from cryptocurrency industry groups, which threatened legal action, and some lawmakers opposed the plan. President Luiz Inácio Lula da Silva deferred the tax debate, leaving the issue open for further discussion.

Regulators and some lawmakers have raised concerns about oversight and the potential for evasion of existing financial rules. Industry groups warn a tax on stablecoin transfers would complicate corporate settlement processes.

For now, companies report expanding use cases where stablecoins offer faster or cheaper alternatives to traditional banking rails, especially for cross‑border settlements in corridors with limited local currency liquidity. Political and economic developments, including rising inflation and a competitive outlook for the October presidential election, are factors cited by market participants as relevant to the timing of future regulation.