Brazil stablecoin demand jumps 158% YoY to $2.6B in May amid tax/classification risk

Brazil stablecoin demand accelerated in May, according to Brazil’s Central Bank data. Total digital-asset and stablecoin purchases rose 155% YoY to $12.138B, while stablecoin buying reached $2.632B (+158% YoY, up from $1.019B in May 2025). April to May flows were broadly steady, with only a 2.8% MoM dip. The report suggests part of the stablecoin demand may come from institutions buying crypto abroad to serve Brazilian users. Stablecoins are also increasingly used as “dollar proxies” across Latin America, beyond crypto-native activity. On policy, Lula’s administration signaled it could revisit stablecoin rules after the 2026 election. A previously planned financial tax on stablecoin transactions was delayed, and Congress is considering classifying stablecoins as electronic money. Industry group Abcripto opposes the change, warning it could create legal issues and slow adoption. For traders, Brazil stablecoin demand strength may support near-term liquidity and payments/remittance flows. However, tax and classification uncertainty could shift issuance, pricing, and on/off-ramp dynamics ahead of any post-election legislative outcomes. The Central Bank also expects improved external-sector transaction estimates once exchange reporting upgrades can be validated in H2 2026.