- According to Receita Federal, the Brazilian tax authority, between January and November, locals traded at least $11.4 billion in stablecoins in 2021
- SmartPay, a crypto service provider, integrated its services with the Brazilian ATMs provider Tech ban, which enabled users to convert USDT to fiat currency at over 24000 ATMs.
- In Brazil, more and more companies have opted to establish a new crypto-payment service as part of their primary systems.
The crypto industry 2022 consists of constant ups and downs, progress and massive failures. Reports show that digital assets are receiving recognition in various countries, while other news spells the destruction of crypto. When focusing on the positive impacts and achievements crypto has made, it is evident that as an alternative financial system, crypto is practical. The consistent crypto volatility plaguing its efforts has resulted in talks on stricter crypto regulations. Although, using these digital assets has transformed various economies. In recent news, Brazil has made significant strides as it smashes its crypto exchange records as a payment service in 2022.
Brazil and Crypto relationship
Brazil is among the few countries that have gradually adopted digital assets within their economy. As their crypto traders have consistently grown over the years, significant parties within the crypto industry took notice of its untapped potential. Organizations such as Binance, Crypto.com, and Coin base associate themselves with Brazilian companies. Their main goal was to establish a crypto payment service that its going traders would use.
According to Receita Federal, the Brazilian tax authority, in 2021, between January and November, locals traded at least $11.4 billion in stablecoins. Also, they tripled the total amount of bitcoin and altcoins traded in 2020. According to statistics, Tether (USDT) is the preferred choice in Brazil, and the crypto industry is significantly benefiting from it.
In 2020, Binance’s representative in Brazil, Mayra Siqueira, stated that the preferred digital asset is stable coins in Brazil. The numbers prove that the trading rates have quadrupled in one year. A feat few have achieved. Brazil is also one of the few countries with clearly stated crypto regulations to ensure each transaction is secure. This ensures that both the crypto trader and the Brazilian economy benefit.
Later, Brazil passed a bill ensuring that a new crypto regulation framework would govern crypto payment services nationwide. This was an exciting turn of events which spelt the rapid growth of the crypto industry and the use o digital assets in South America. Brazil’s Chamber of Deputies approved and signed it under code PL 4401/2021. This bill would include digital currencies and frequent traveller rewards from airlines. Essentially the crypto regulation would protect crypto traders from scammers and fraudulent activities. In addition, it established another means of empowering its economy.
Brazilian companies take advantage of crypto volatility.
One of the few upsides to crypto volatility is that it provides a window of opportunity. The reduced prices of the crypto industry make it much easier ft crypto traders to buy more crypto coins. In Brazil, more and more companies have opted to establish a new crypto-payment service as part of their primary systems. After the Brazilian Tax Authority could obtain crypto purchase deals from taxpayers, nearly 42000 companies purchased some form of cryptocurrency during October.
This sent shockwaves throughout the crypto industry. It broke the previous record of 40,161 institutions purchasing digital assets in under a month. However, the next few weeks would see an unprecedented crypto crash sidelining such an achievement.
However, the continuous bleak news within the crypto industry shows a sign of hope for all crypto traders. By taking advantage of the low prices, Brazil can continuously purchase more and more crypto assets aside from its usual stablecoin Tether(USDT). Aside from establishing crypto regulations and new payment services, Brazil needs to figure out its stance after the recent FTX crash. However, the numbers are still consistent since October, which may signify hope for Brazil’s crypto ecosystem.
The popularity rate of digital assets within Brazil is steadily growing as the continuous transactions of USDT are still noticeable. According to reports, Tether settled excess funds in Brazil in October. As such Brazilian companies have taken the necessary steps to offer a means to connect USDT to the fiat currency system.
SmartPay, a crypto service provider, integrated its services with the Brazilian ATM provider Tech ban, which enabled users to convert USDT to fiat currency at over 24000 ATMs. A feat that many crypto-affiliated countries are trying to achieve. The closest Africa has gotten via Nigeria, South Africa and Kenya, only offering a few ATMs which such capabilities.
As the crypto industry steadily grows, now more than ever, organizations and governments seek to establish vivid crypto regulations to govern payment services and systems. This may be an attempt to restrict crypto within an ideal space further. Although it is still speculation, another scenario, such as FTX, would be an instant death sentence to digital assets.
Brazil is among the few countries that still give crypto, blockchain and even Web3 hope that crypto still lives on despite the crisis. Will Brazil’s crypto ecosystem grow or suffer under the pressure of the crypto crash? Fortunately, that is another story for another time.