The Central Bank of Brazil reveals that this year, Brazilians have been purchasing about $533,8 million in cryptocurrencies on average per month.
In a report A recent report presented by the Central Bank of Brazil, the highest financial authority of the Latin American country, reveals that Brazilians' interest in cryptocurrencies and digital assets has grown exponentially this year. According to the data shown by the central bank in its 2021 financial report, from January to August, Brazilians have been purchasing an average of $533,8 million a month in cryptocurrencies, accumulating value for a total of $4.271 million so far in 2021. The cryptoassets in greatest demand in the Latin American country are Bitcoin y Ethereum, reported the Swiss Info portal in July.
May was the month with the highest demand for cryptocurrencies in Brazil. According to the bank's data, that month Brazilians bought a total of 756 million dollars in cryptocurrencies, followed by June, with 695 million dollars and July, with 583 million dollars.
Trade balance of goods: reconciliation between foreign trade and the balance of payments.
Source: Central Bank of Brazil (CB)
Data revealed by the central bank shows that cryptocurrencies have gained greater popularity and importance in Brazil this year, since the government began to relax its regulations to allow the development of this market. The Brazilian government is even studying the possibility of recognizing cryptocurrencies as legal digital assets within its territory, according to statements made by Aureo Ribeiro, Brazilian federal deputy, this month.
Ribeiro presented a bill to follow in the footsteps of El Salvador and recognize Bitcoin and cryptocurrencies as currencies of payment and exchange of value in Brazil, although this is not the same as giving legal tender to crypto assets. The crypto regulation bill in Brazil is currently being studied in the Chamber of Deputies.
It may interest you: Brazil leads cryptocurrency investment with new carbon-neutral Bitcoin ETF
55% of Brazilians invest in cryptocurrencies
The results of a survey conducted in September by the marketing agency Sherlock Communications indicate that 55% of Brazilians surveyed have some type of investment in cryptocurrencies. For citizens, bitcoin and crypto assets have become an investment asset to diversify their portfolios, with great potential for revaluation and future growth.
Likewise, the results of the survey, published by the newspaper The Economist, point out that 48% of Brazilians want cryptocurrencies, especially bitcoin, to become legal tender assets in the country. Additionally, the agency revealed that more than 50% of Brazilians surveyed expressed support for El Salvador's Bitcoin Law and only 17% said they disagreed with crypto assets.
On the other hand, 23% of Brazilians stated that cryptocurrencies have a promising future and only 4% considered that they will disappear from the market in the coming years.
Brazil's friendlier regulation towards the crypto industry and the authorization of new investment products such as cryptocurrency ETFs launched this year, are opening the doors of the crypto space to a broader mass of investors in the country and in Latin America. Brazil is the first country in the region to launch an ETF (exchange-traded fund) for Bitcoin and another for Ethereum, regulated by the Securities and Exchange Commission (CVM).
Brazil, Blockchain and NFT
Although in 2019, Brazilian President Jair Bolsonaro expressed his disagreement with Bitcoin and stated that he did not even know what it was, it seems that he has currently changed his perception of this cryptocurrency and its potential benefits. According to Ribeiro, the bill currently being analyzed by the Chamber is advancing with the support of the president. On the other hand, the regulation of Bitcoin and cryptocurrencies also has the support of the president of the Central Bank, Roberto Campos Neto and the president of the Chamber of Deputies of Brazil, Arthur Lira, who want to regulate cryptoassets as investments in the country.
Likewise, Bolsonaro has expressed his support for technology blockchain, pointing out that this innovation can help you regain the trust of Brazilians, thanks to its transparency and immutability. In fact, Bolsonaro is integrating blockchain into his current government plan. In April of last year, the Brazilian president signed a decree to authorize the digitization of the government through this powerful technology.
In September, Yield Guild Games (YGG) partnered with Brazilian gaming startup BAYZ to boost the gaming economy based on NFT in the country. YGG and BAYZ are building a broad community of gamers in Brazil and Latin America around Axie Infinity and other blockchain games, in order to open new value and earning opportunities for players.
Continue reading: Brazil advances crypto adoption and aims for digital NFT economy
