Brazilians buy more than $500 million in crypto on average per month

The Central Bank of Brazil reveals that this year, Brazilians have been buying about 533.8 million dollars 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 the interest of Brazilians in cryptocurrencies and digital assets has grown exponentially this year. According to the data shown by the central bank in its financial report for this 2021, from the month of January to August, Brazilians have been buying an average of $533.8 million per month in cryptocurrencies, amassing value totaling $4.271 million so far in 2021. The most demanded cryptoactives in the Latin American country are Bitcoin and ethereumreported the Swiss Info portal in July.

May was the month with the highest demand for cryptocurrencies in Brazil. According to data from the bank, 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)

The data revealed by the central bank shows that cryptocurrencies have gained more 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, federal deputy of Brazil, this month.

Ribeiro presented a bill to follow in the footsteps of El Salvador and recognize Bitcoin and cryptocurrencies as payment currencies and value exchange in Brazil, although this is not the same as giving crypto assets legal tender. The crypto regulation bill in Brazil is currently being studied in the Chamber of Deputies.

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55% of Brazilians invest in cryptocurrencies

The results of a survey conducted in September by the marketing agency Sherlock Communications indicates 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 future appreciation and growth.

Also, the results of the survey published for the newspaper The Economist, point out that 48% of Brazilians want cryptocurrencies, especially bitcoin, to become legal tender in the country. In addition, 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 said 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 of 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, the president of Brazil Jair Bolsonaro expressed his disagreement towards Bitcoin and claimed that he did not even know what it was, it seems that his perception of this cryptocurrency and its potential benefits has now changed. 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 Brazilian Chamber of Deputies, Arthur Lira, who want to regulate crypto assets as investments in the country.

Likewise, Bolsonaro has expressed his support for technology blockchain, noting that this innovation can help him regain the trust of Brazilians, thanks to its transparency and immutability. Indeed, 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 government through this powerful technology.

In September, Yield Guild Games (YGG) partnered with Brazilian gaming startup BAYZ to boost the web-based gaming economy. NFT in the country. YGG and BAYZ are building a large 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 in Crypto Adoption and Targets Digital NFT Economy