Brazilian Tax Authority Reports Stablecoin Trading Growth
The Brazilian Tax Authority (RBF) has recently published an article acknowledging the significant growth in stablecoin trading in Brazil. Stablecoins, which are tokens tied to the value of other currencies, have become increasingly popular in the country and have surpassed the volumes of cryptocurrencies like Bitcoin (BTC). The RBF states that the stability of stablecoins makes them a more reliable means of payment.
According to data received from exchanges that are required to report their movements by law, Tether's USDT, USDC, and BRZ (a Brazilian real-pegged stablecoin) are the most traded stablecoins in Brazil. However, USDT has the highest trading volumes, accounting for 80% of all transactions in 2023.
The RBF had previously reported that more than $18 billion worth of transactions were made using USDT during the first two quarters of 2023, representing over 80% of the total volume moved during that period.
USDT Leadership Confirmed
The Brazilian Tax Authority has confirmed the leadership of USDT in the Brazilian cryptocurrency market, stating that this could have significant implications for the regulation of cryptocurrencies in the country. The institution acknowledges that the trading of stablecoins like Tether has surpassed the trading of Bitcoin and other cryptocurrencies.
Since the RBF started receiving reports in 2019, USDT transactions have amounted to over 271 billion reals (approximately $54 billion). USDT's trading volumes have surpassed those of BTC since 2022, experiencing significant growth since July of that year.
Paolo Ardoino, the CEO of Tether, commented on the report, attributing the growth to the usefulness of USDT. He stated that when a product provides real-world solutions, it naturally gains adoption.
In January, several Brazilian experts explained why Brazilians prefer stablecoins over the US dollar as a hedge against devaluation and inflation. They cited the lack of administration or performance fees and the existence of a 24-hour liquid market for trading these assets as key factors.
What are your thoughts on the prevalence of Tether in the Brazilian cryptocurrency market? Share your opinions in the comment section below.
Frequently Asked Questions
How do you withdraw from an IRA that holds precious metals?
You first need to decide if you want to withdraw money from an IRA account. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, determine how much money you plan to withdraw from your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities can accept bullion bar, while others require you buy individual coins. Either way, you'll need to weigh the pros and cons of each before choosing one.
Bullion bars, for example, require less space as you're not dealing with individual coins. But, each coin must be counted separately. However, keeping individual coins in a separate place allows you to easily track their values.
Some prefer to store their coins in a vault. Others prefer to store their coins in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
How is gold taxed in Roth IRA?
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
These rules vary from one state to another. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you up to April 1st. New York offers a waiting period of up to 70 1/2 years. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
What is a Precious Metal IRA, and how can you get one?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers simply to the physical metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This allows you to receive dividends every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay a small percentage tax on the gains. You also have unlimited access to your funds whenever and wherever you wish.
Is it a good retirement strategy to buy gold?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion is the most popular method of investing in gold. There are many ways to invest your gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you need cash flow to finance your investment, then gold stocks could be a good option.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Experts believe this could change soon. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also point out that gold is becoming popular because of its perceived value and potential return.
Consider these things if you are thinking of investing in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save for retirement while still investing your gold savings. However, you can still save for retirement without putting your savings into gold.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each type offers varying levels and levels of security.
- Last but not least, gold doesn't provide the same level security as a savings account. It is possible to lose your gold coins.
If you are thinking of buying gold, do your research. Make sure to protect any gold you already own.
Can I purchase gold with my self directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contract are financial instruments that depend on the gold price. These contracts allow you to speculate on future gold prices without actually owning it. You can only hold physical bullion, which is real silver and gold bars.
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Lawful – WSJ
Tips for Investing with Gold
Investing in Gold has become a very popular investment strategy. There are many benefits to investing in gold. There are several options to invest in the gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
Before buying any kind of gold, you need to consider these things.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. You can also look at buying gold abroad.
- The second is to decide which kind of gold coin it is you want. There are many options for gold coins: yellow, white, and rose.
- You should also consider the price of gold. It is better to start small, and then work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Remember that gold prices are subject to change regularly. You need to keep up with current trends.
By: Sergio Goschenko
Title: Brazilian Tax Authority Acknowledges ‘Vertiginous Growth' of Stablecoin Trading
Sourced From: news.bitcoin.com/brazilian-tax-authority-acknowledges-vertiginous-growth-of-stablecoin-trading/
Published Date: Wed, 01 Nov 2023 07:30:25 +0000