Brazil has become one of the world’s largest real-world experiments in digital dollars, with stablecoins now accounting for the majority of reported crypto activity in Latin America’s biggest economy, according to the International Monetary Fund (IMF).

Digital Dollars Take the Lead

According to the IMF report, Brazil’s crypto market, particularly USD-pegged stablecoins, has expanded rapidly since 2017.

The fund said cross-border crypto flows have grown faster than traditional capital flows and nominal GDP when measured against economic activity, although crypto-related financial stability risks remain contained for now.

Brazilian authorities reported more than $200 billion in stablecoin transaction volume between August 2019 and December 2025, equal to 71.7% of declared crypto activity over that period. In 2025, stablecoins represented about 80% of monthly declared crypto volume.

By comparison, Brazil’s real GDP increased by roughly 20% cumulatively between 2017 and 2024.

The growth of stablecoins is taking place alongside a broader shift in Brazil’s financial system, where digital banking and Pix have already changed how millions of consumers move money. That makes the IMF’s focus notable not because stablecoins are replacing those tools, but because they are increasingly part of the same digital payments landscape that regulators already oversee through banks, payment firms, and reporting rules.

The rise of digital banking and the widespread adoption of the low-cost instant payment system Pix have reshaped Brazil’s financial landscape, boosting competition and improving efficiency across the sector.

Emerging digital banks have also increased competition in a market historically dominated by a small number of large financial institutions.

Why Global Regulators Are Watching

The IMF report says stablecoin flows are far more sensitive to global economic turbulence than traditional international investments.

Between one-third and two-thirds of the movement in stablecoin purchases is driven by external financial forces such as the VIX volatility index, swings in the S&P 500, and movements in Bitcoin’s price.

“While systemic financial stability risks related to crypto currently appear contained, the rapid growth of crypto activity, including stablecoins as one component, warrants close monitoring,” the IMF said.

The IMF called for stronger oversight of stablecoins, including clearer rules for custody, consumer protections, and coordination among regulators. The fund also warned that relying only on crypto companies to manage risks may not be enough as adoption expands.

Why This Matters

The findings come as Brazil’s Congress prepares to consider Bill 4308/2024, legislation intended to formally regulate stablecoins.

The crypto industry has pushed back on parts of the bill, especially its approach to stablecoin classification, in a debate that echoes the reserve-transparency and oversight questions U.S. lawmakers have faced in their own stablecoin legislation.

With crypto-related cross-border activity growing faster than traditional capital flows relative to economic activity and showing strong sensitivity to dollar-market swings, the IMF’s assessment adds pressure on Brazilian lawmakers to move forward with the bill and offers a preview of the compliance standards regulators may expect from issuers and platforms.