Companies in Brazil are increasingly turning to cryptocurrencies in a bid to tackle high inflation.
The goal is to use cryptocurrencies to fight increasing inflation, according to local media reports.
Presently, there are 12,053 organizations that have declared cryptocurrencies on their balance sheets with the country’s tax authority, the Receita Federal do Brasil (RFB).
What this means is that companies are more inclined to now diversify their portfolios and turn to cryptocurrencies as a hedge against inflation.
The number of companies holding cryptocurrencies has increased from July, up by 6.1% from 11,360 previously.
Interestingly, consumers have been dropping cryptocurrencies, as the overall numbers of people declaring crypto ownership fell to 1.3 million in August.
Of course, this may not account for the many people who are not obligated to declare cryptocurrency holdings or choose not to.
The most transacted digital token was USDT, which has its value pegged to the value of the US dollar.
A total of $1.42bn was transacted this way across 80,000 transactions. This averages $17,500 per transaction. Meanwhile, Bitcoin came second with $270m in total transactions.
Another report by Bitstamp argues that Brazilians remain confident in the future of cryptocurrencies despite the decline in overall transactions and slight drop in ownership.
This comes against mounting inflation that consumers, like companies, are trying to overcome. Currently, inflation in Brazil is running at 12.1%, a 26-year high.
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