The recent increase in IOF (Tax on Financial Operations) rates announced by the Ministry of Finance — which in some cases rose from 0.38% to up to 3.5% — has drawn attention to the high cost of financial transactions in Brazil, especially those involving foreign exchange. The change affects consumers and businesses conducting international operations, from purchases abroad to payments and remittances in foreign currency.
This scenario reignites the debate about the efficiency and costs of the traditional banking system. In addition to the IOF, foreign exchange operations often involve high spreads, which can range from 1% to 7% over the reference rate (PTAX), especially for low volumes — a common reality among consumers and small businesses.
In this context, interest in digital alternatives, such as stablecoins — cryptocurrencies typically pegged to fiat currencies like the dollar — is growing. As explained by Bárbara Espir, Country Manager of Bitso in Brazil: “USDT (Tether) and USDC are examples of dollar-backed stablecoins widely used, even in Brazil, to send and receive funds, protect assets against the devaluation of the real, and even make international payments.”
Because they are based on blockchain, a traceable technology available 24/7 that does not require intermediaries in the validation process, transactions with stablecoins tend to be faster, often settling instantly, cheaper, and when traded as investments, are exempt from IOF. Moreover, platforms that mediate the buying and selling of these digital currencies, such as Bitso, often offer more competitive fees, between 0.1% and 0.5% compared to traditional exchange rates, and even provide additional benefits like yields similar to those obtained by investing in U.S. Treasury bonds.
Data from the Central Bank show that in 2024, Brazil recorded $18.2 billion in crypto asset imports, highlighting the growing adoption of these technologies as a means of accessing the global market and financial protection. This trend is particularly relevant for small and medium-sized enterprises (SMEs), which face tighter margins and difficulty accessing credit in the traditional system — according to Sebrae, 88% of them cannot secure bank financing due to lack of guarantees.
“This trend reinforces the search for more efficient alternatives to traditional foreign exchange, both economically and operationally. In an environment where the cost of international transactions is rising, solutions like stablecoins offer simplicity, transparency, and more democratic access to the dollar,” adds Bárbara.
With a regulatory environment still evolving but gaining traction, stablecoins are emerging as a promising tool to reduce costs, increase exchange rate predictability, and make the use of hard currency more accessible, especially in times of tax uncertainty.
