Brazil leads the cryptocurrency market in Latam

Something that characterizes the growing Latam’s willingness to adopt cryptocurrencies, are its geoeconomic characteristics, as we have discussed previously, the fluctuating inflation and eventual devaluations of different countries in this region make decentralized finances a perfect path to stability economy of countries like Argentina in general terms. In the case of Brazil, there are some important facts to know before launching a new cryptocurrency.

The growth of cryptocurrencies in Brazil has allowed many financial experts and stock exchanges in the world to foresee that it is the market for cryptocurrencies most important in Latin America.

The phenomenon of the explosion of cryptocurrencies in Brazil, began from the curve that began to be registered during 2020, where the volume of stablecoin exchanges quadrupled in that period alone. By 2021, the level of ntrading in cryptocurrencies in Brazil was approximatelyequivalent to 11.4 billion.

This growth is explained by the fact that, contrary to what happens in Argentina, where cryptocurrencies represent the third financial asset after the US Dollar and the Argentine Peso, Brazilian citizens see in the tax on the purchase of dollars that ranges between 1.1% and 6.38% an incentive to acquire cryptocurrencies which, in addition to shielding against inflation or abrupt falls in value, does not imply no tax.

The confrontation with the central bank of Brazil against the dollar is clear. Until December 2021, the regulation prohibits making savings in dollars. For the month of August 2021, Brazilian investments in cryptocurrencies amounted to nearly 50 billion dollars, compared to 16 billion in US stocks.

In other words, in contrast to what is happening in Colombia or Peru, where the use of cryptocurrencies is only in a phase of diffusion and integration, Brazilian citizens currently use cryptocurrencies quite normally. In October 2020, the Central Bank of Brazil launched a payment system called Pix, which by November 2021 had approximately 104 million users, which in turn represent 70% of all transactions in the country.

While the consolidation of cryptocurrencies as the most important economic asset in Brazil continues, the country’s congress is currently debating a bill that seeks to create operating rules for decentralized finance in the country.

The potential that Brazil represents for the cryptocurrency market is particularly important for companies such as Binancce Smart Chain or Crypto.com those who see in the launch of new cryptocurrencies in Brazil, an important growth opportunity.

The European exchange Bit2me, for example, plans to join the brazil market, allowing the acquisition of tokens with fiat currencies.

The expansion of different cryptocurrency exchanges in Brazil , consequently leads to the opening of a new market around DeFi. As in the case of Ripple, the global payment company.

Undoubtedly, Brazil represents the spearhead at the regional level for the launch of all kinds of tokens based on the blockchain. The most important part of knowing the current development of the crypto economy in Brazil is that its example will lay the foundations for the comprehensive penetration of DeFi throughout Latam.