A year of mass adoption for cryptocurrencies in Brazil


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All through 2021, the Brazilian cryptocurrency market managed to distance itself from the police pages and eventually win acceptance with most people, whether or not within the monetary market and even within the best nationwide ardour: soccer.

Final yr, Bitcoin (BTC) acted as a robust various to the Brazilian actual that ended 2021 by breaking damaging information and reaching a devaluation of 6.5% by December, making it the 38th worst currency in the world.

In a yr of ups and downs for Bitcoin, the largest cryptocurrency hit a backside of 167,000 actual in January and soared together with world markets to 355,000 actual in Could. Confronted with Bitcoin’s dip, the BRL/BTC pair was caught under 200,000 reals till August, when it started to rise to a brand new historic high of 367,000 real on Nov. 8.

Confronted with the necessity for financial safety, Brazilians turned to crypto. 10 million Brazilians now participate within the crypto market, in response to CoinMarketCap.

In conventional monetary markets, the Brazilian Inventory Trade debuted exchange-traded funds (ETFs) linked to Bitcoin and Ether (ETH). There are already five ETFs listed on B3, a few of them positioned among the many most worthwhile in the complete Brazilian inventory market in 2021.

The Central Financial institution of Brazil additionally announced new developments in the digital real, a central financial institution digital forex (CBDC), which may very well be launched as early as 2023. The Brazilian Central Financial institution additionally introduced that it’s going to proceed working to incorporate blockchain technology into its services by finishing up a collection of checks via a devoted workforce on the financial authority.

Within the Federal Congress, discussions on the regulation of cryptocurrencies in Brazil dragged on all year long, till in December, federal deputies approved Invoice 2303/15, which establishes standards for the regulation of cryptocurrencies within the nation. The invoice will probably be additional mentioned in 2022 within the Home’s plenary session and later within the Federal Senate.

There was rigidity amongst main gamers within the cryptocurrency market in Brazil in 2021, but in addition some excellent news. 

Brazilian exchanges went head-to-head with main crypto alternate Binance. Exchanges across the nation worked with the Brazilian Cryptoeconomy Association to conform Binance to comply with guidelines established by the Brazilian Securities and Trade Fee, Federal Income Service and the central financial institution. The worldwide alternate continues to be negotiating with Brazilian market regulators and the nation’s monetary authorities.

Associated: ‘Mecca of mining’: Brazil considers zero tax on green Bitcoin mining

However, Brazil’s largest alternate, Mercado Bitcoin (MB) — at present certainly one of Latin America’s crypto unicorns — expanded its operations within the nation, getting into the sporting world as soon as and for all. MB additionally labored alongside Chiliz to make fan tokens extra accessible to Brazilian followers, a novelty that was adopted by nationwide soccer giants comparable to Corinthians, São Paulo, Internacional, Atlético-MG and Flamengo.

The nonfungible token (NFT) market additionally reached Brazil with large adoption and presence of Brazilian gamers in play-to-earn video games, collectible platforms and even within the arts, being adopted by visible artists and famend names in Brazilian music such as André Abujamra and Zeca Baleiro.

For the following yr, we are able to anticipate much more main Brazilian and Latin American companies to enter the cryptocurrency market. The Brazilian Inventory Trade hopes to develop its providing of cryptocurrency-linked investments, with consultants focusing on decentralized finance (DeFi), NFTs and the Metaverse.

It’s additionally price remembering that 2022 is an election yr in a rustic that has been polarized since 2016, with the Bolsonaro authorities affected by low reputation and being outlined by social rigidity. The elections may have an effect on not solely the course of the digital actual but in addition the way forward for the Brazilian economic system, together with cryptocurrency markets.