Stablecoin adoption in Brazil has surged as citizens seek alternatives to avoid the increased Financial Transaction Tax (IOF), which rose from 1.1% to 3.5% earlier this year. Cryptocurrency exchanges like Biscoint have reported a 78% increase in stablecoin trading volumes from 2024 to 2025, with total turnover climbing from $9.84 billion to $13.74 billion. Similarly, Bitybank observed a 36% rise in stablecoin trading between June and July. In response to this growing trend, the Central Bank of Brazil is preparing regulations to address the use of stablecoins in international payments, highlighting the need for clear tax treatment guidelines. This regulatory move aims to provide clarity and structure to the burgeoning stablecoin market in the country.