IMF Says Brazil’s System Is Working—So Why Is Crypto Booming Without a Crisis?

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Photo by BeInCryptoBrazil is testing one of crypto’s oldest assumptions: that digital assets only thrive when traditional financial systems fail.With its benchmark Selic rate sitting at 15%, one of the highest among major economies, Brazil’s central bank has maintained an aggressively tight monetary stance. Yet according to new IMF research, the country’s financial system is not cracking under pressure. Instead, credit markets remain resilient, and crypto adoption is accelerating anyway.Only days after releasing its Q2 2025 COFER data, the International Monetary Fund (IMF) has shared another report, this time dissecting Brazil's macroeconomic outlook. In the post, the IMF said that Brazil’s recent credit expansion “was not a policy failure,” arguing that monetary transmission remains effective despite elevated interest rates.“IMF research shows that the recent credit expansion in Brazil, amid a basic interest rate of 15%, was not a policy failure. Fintechs and rising incomes are reshaping access to finance. Meanwhile, monetary policy keeps doing its job,” wrote the IMF in a post.Bank lending rose 11.5% in 2024, while corporate bond issuance surged 30%. These outcomes would typically dampen the appetite for alternative financial assets. By conventional macro logic, this should be a hostile environment for crypto.Brazil raised policy rates earlier and more aggressively than peer countries, reaching 15% in 2024-2025 (Source: IMF)Instead, Brazil’s crypto activity jumped 43% year-over-year (YoY) in 2025, exposing a growing disconnect between legacy macro narratives and on-the-ground adoption trends.The IMF’s latest Article IV consultation emphasizes that Brazil’s central bank has done “exactly what it was supposed to do.”Policy tightening has filtered through to lending rates,Credit growth has begun to slow, andInflation expectations, while still elevated, are being actively managed.Strong income growth, low unemployment, and rapid fintech expansion helped sustain credit demand even in the face of high interest rates.Digital banks and fintech lenders now account for roughly a quarter (25%) of Brazil’s credit card market, dramatically expanding financial access without undermining policy effectiveness.Yet crypto adoption is rising in parallel, not as a protest against the system, but increasingly as an extension of it.Citing Mercado Bitcoin, the largest digital-asset platform in Latin America, industry analysts indicate that younger investors are driving Brazil’s crypto surge.Adoption among users aged 24 and under increased by 56% YoY, driven by stablecoins and tokenized fixed-income products, not by speculative altcoins.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,952.75 -2.25 (-0.03%)Dow Futures48,743.00 -6.00 (-0.01%)Nasdaq Futures25,727.50 -12.25 (-0.05%)Russell 2000 Futures2,537.50 +1.30 (+0.05%)VIX14.20 +0.60 (+4.41%)Gold4,380.30 +36.70 (+0.84%)Trending tickersBNAI Brand Engagement Network, Inc. 2.5050 +1.3050 (+108.75%)RARE Ultragenyx Pharmaceutical Inc. 19.72 -14.47 (-42.32%)MREO Mereo BioPharma Group plc 0.2854 -2.0246 (-87.65%)CETX Cemtrex, Inc. 2.1100 -0.1700 (-7.46%)RPGL Republic Power Group Limited 0.6834 +0.4201 (+159.55%)PortfolioSign in to access your portfolioSign inTop gainersPRAX Praxis Precision Medicines, Inc. 304.58 +35.63 (+13.25%)RGC Regencell Bioscience Holdings Limited 23.48 +2.32 (+10.96%)DBRG DigitalBridge Group, Inc. 15.26 +1.34 (+9.63%)BLTE Belite Bio, Inc 165.29 +10.36 (+6.69%)PSNY Polestar Automotive Holding UK PLC 18.66 +1.12 (+6.39%)Top losersSBSW Sibanye Stillwater Limited 14.20 -1.50 (-9.55%)BRBR BellRing Brands, Inc. 27.33 -2.83 (-9.38%)DJTWW Trump Media & Technology Group Corp. 7.38 -0.74 (-9.11%)DRD DRDGOLD Limited 30.54 -2.79 (-8.37%)HMY Harmony Gold Mining Company Limited 19.95 -1.79 (-8.23%)Most activeNVDA NVIDIA Corporation 188.22 -2.31 (-1.21%)DBRG DigitalBridge Group, Inc. 15.26 +1.34 (+9.63%)NIO NIO Inc. 5.34 +0.24 (+4.71%)PLUG Plug Power Inc. 1.9700 -0.1000 (-4.83%)TSLA Tesla, Inc. 459.64 -15.55 (-3.27%)Top economic eventsEarnings eventsMy earnings eventsEarnings events