BRZ is the most traded Brazilian cryptocurrency in the country, according to Brazil’s IRS

BRZ is the most traded Brazilian cryptocurrency in the country, according to Brazil’s IRS

BRZ is the most traded Brazilian token and the second largest stablecoin in the country, according to data reported by exchanges to the IRS

BRZ is the most traded Brazilian cryptocurrency in the country, according to Brazil’s IRS

By Editorial Staff

BRZ, the Transfero Swiss token that holds parity with the Brazilian real, is the most traded Brazilian cryptocurrency in the country, according to data from August 2019 to February 2020, as reported by exchanges – for buying and selling cryptoassets – to the Internal Revenue Service. BRZ’s trading volume totaled approximately US$ 100 million in the period. The asset is the second most traded stablecoin in the country, second only to Tether (USDT), pegged to the dollar, and the fifth cryptocurrency with the highest volume of operation, ahead of Litecoin (LTC) and Ether (ETH).

“The BRZ was created with the idea of being the first digital asset backed by a currency of an emerging country, in this case the Brazilian real. Our vision is in line with the international movement of countries such as China, that have understood the importance of having national currencies reflected, in a way, on the blockchain. The digitization of the economy is inevitable”, says Thiago Cesar, CEO of Transfero Swiss

BRZ had higher trading in December 2019, says IRS

December 2019 had the highest trading volume of BRZ, about US$ 30 million. The main BRZ traders are individuals and legal entities operating between various brokers in the cryptocurrency market. For example, people who move resources between exchanges to invest in a particular cryptoasset or hedge against bitcoin price volatility in times of increased market jitters. Most of the holders – about 90% – are from Brazilian investors.

The Regulatory Resolution of the Internal Revenue Service number 1.888/2019 provides that Brazilian cryptocurrency exchanges report all transactions above R$ 30.000,00 in the period of one month carried out on their platforms. In addition, individuals and legal entities that carry out transactions without intermediary of brokers or in firms located abroad also need to provide the same information to the IRS whenever those transactions exceed that value.

Stablecoins allow access to the cryptocurrency market without exposing themselves to bitcoin

Stablecoins are cryptocurrencies that follow the value of some sovereign currency, such as dollar, euro or yuan. The holder of a token can either exchange it for traditional money on selected exchanges or trade it against other pairs of digital assets, the main being the bitcoin. The main advantage of a stablecoing pegged to the real is the possibility of accessing the international cryptoassets market without exposing to the short-term volatility of the bitcoin.

The BRZ maintains audited reserves equivalent to the volume of tokens issued in government securities denominated in Reais, which allows the value of each token to be R$ 1. These reserves are reported in the BRZ Transparency Portal, which also includes transaction volumes, the number of wallets holding the asset, tokens in treasury and circulation, and assets in reserves, among other information. The token price is kept stable by the market agents’ own performance, based on these reserves. The token is listed on exchanges located in Brazil, Europe, China, and the United States.