Stablecoins are increasingly appearing in conversations among those who work remotely, bill international clients, or travel frequently to Latin American countries. 

The proposal is attractive: a digital asset that seeks to maintain peg with the dollar, transferable to any compatible wallet without relying on a bank or business hours.

But what is simple in theory has some layers that are worth understanding before using. This content is not a financial recommendation. 

The objective is to explain how stablecoins work in practice, what risks exist, and what to verify before deciding to use them.

For those who want to explore alternatives for receiving, converting, and moving digital assets simply, the belo app can be a starting point, depending on the features available for your account and country.

What is a stablecoin and why does it matter to travelers

A stablecoin is a crypto-asset whose value seeks to remain pegged to a reference currency, usually the US dollar. For each token in circulation, the issuer maintains equivalent reserves in dollars or highly liquid assets. 

USDT (Tether) and USDC (Circle) are the two with the highest market capitalization and global liquidity.

For those who travel frequently in Latin America, stablecoins solve a practical problem: holding a digital dollar balance without needing a bank account abroad. 

Converting Brazilian Reais into USDC or USDT and loading that balance into a digital wallet eliminates the need to exchange money at every crossed border. The conversion to local currency happens at the moment of use, according to the conditions of the platform you use.

For those who bill clients abroad, stablecoins function as an intermediate layer. A client in the US or Europe can send dollars or euros that arrive as USDC or USDT, and you decide when and how to convert to Reais according to market conditions.

This gives more flexibility than automatically converting at the moment of receipt.

To understand how to receive from abroad via different channels, check out the belo blog articles on how to receive money from abroad and how to receive dollars in Brazil.

USDT or USDC: what changes in practice

USDT is the stablecoin with the highest trading volume and global liquidity. It operates on multiple blockchain networks, including Tron (TRC20) and Ethereum (ERC20), which directly affects the cost of each transfer.

On the Tron network, the sending cost is usually lower and the confirmation speed higher, making it popular for frequent transfers of smaller amounts.

USDC has a more transparent history of reserve audits, with monthly attestations conducted by independent firms. For those who value traceability and regulatory compliance, this may weigh in on the decision.

Worth remembering: in March 2023, USDC temporarily lost its peg to the dollar when Silicon Valley Bank, where Circle kept part of its reserves, faced issues. Even well-structured stablecoins carry counterparty risk.

What stablecoins do not solve on their own

Stablecoins work as a bridge, not as a final destination. To spend in Argentine pesos or Reais, you still need to convert the balance to the local currency at some point. 

This process has costs that vary depending on the platform, the network used, and the chosen off-ramp method.

When receiving in stablecoin from a client abroad, it is worth considering the cost of each step: the exchange rate applied in the send, the network fee for the transfer, the spread of the conversion to Reais, and any taxes on the receipt. 

In some cases, traditional channels like ACH or SEPA may have comparable conditions depending on the amount and destination. To compare options, check out the blog articles on ACH to receive from abroad and how to receive a SEPA transfer.

Risks that need to be in the calculation

• Issuer risk: the peg depends on the solvency and honesty of whoever issues the stablecoin. If reserves are not sufficient or are in illiquid assets, the token could lose its peg. Verify if the issuer regularly publishes independent audits.

• Smart contract risk: vulnerabilities in code can result in loss of funds. Larger issuers with audited contracts reduce this risk, but do not eliminate it.

• Network risk: sending USDT via Tron to an address that only accepts Ethereum can result in irreversible loss of funds. Always confirm the compatible network before sending.

• Tax risk: earnings on stablecoins and gains on conversion may have tax implications. Consult an accountant or official source before filing.

How to use stablecoins in practice for travel and billing

Situation · How stablecoins can help · What to verify beforehand

Travel in Latin America · Hold digital dollar balance and convert upon arrival in each country · Conversion spread of the platform, local liquidity for off-ramping

Receiving from clients abroad · Receive in USDC or USDT and convert to Reais at the most convenient time · Total cost of each step vs. traditional channels

Saving dollar balance without an account abroad · Hold USDC or USDT in a wallet for future use · Issuer risk, custody platform, timeframe of use

At belo, you can explore alternatives through the app to receive, convert, and move digital assets, according to the features available for your account and country.

To understand how conversions work, check out the conversion guide in the help center. To add balance, see the guide on how to add money.

To understand how to receive via international transfers, consult the money transfer guide. Before any operation, review the amounts and conditions displayed on the screen. Keep the receipts of each transaction.

For freelancers and professionals billing from abroad, the belo-freelancer guide has information on how to receive international payments more simply.

Frequently asked questions about

What is the difference between USDT and USDC in practice?

USDT has higher liquidity and is available on more networks, which facilitates trading. USDC has a more transparent history of reserve audits, which may be relevant for those prioritizing traceability. Both carry issuer risk and banking counterparty risk.

Is it safe to use stablecoins to receive from international clients?

It depends on the custody platform and the chosen issuer. Verify if the issuer publishes independent audits of reserves and if the platform you use has a transparent track record. Never keep amounts you can’t afford to lose with a single issuer or platform.

Do I need to declare stablecoin earnings on my income tax?

Earnings and capital gains with crypto-assets may have tax implications in Brazil. Consult an accountant or official source to understand the obligations that apply to your situation before declaring.

What is the cost difference between sending stablecoins via Tron and Ethereum?

On the Tron network (TRC20), transaction cost is usually lower and confirmation faster. On the Ethereum network (ERC20), gas fees can be higher during times of network congestion. Always confirm which network the recipient accepts before sending.

Can stablecoins lose their peg with the dollar?

Yes. It already happened to USDC in March 2023, when there was a temporary de-pegging. Diversifying among different issuers reduces the concentration of this risk. Keep in stablecoins only the balance needed for near-term use, not as a long-term reserve.

Want to follow alternatives to receive, convert, and move digital assets? Download the belo app and check the features available for your account and country. For freelancers billing from abroad, see the belo freelancer page. Also, check out the guide on how to bill clients from abroad on the belo blog.