A year of mass adoption for cryptocurrencies in Brazil

All through 2021, the Brazilian cryptocurrency market managed to distance itself from the police pages and at last 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 powerful different to the Brazilian actual that ended 2021 by breaking destructive data and reaching a devaluation of 6.5% by December, making it the thirty eighth worst forex on the planet.

In a yr of ups and downs for Bitcoin, the most important 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 excessive of 367,000 actual on Nov. 8.

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

In conventional monetary markets, the Brazilian Inventory Change debuted exchange-traded funds (ETFs) linked to Bitcoin and Ether (ETH). There are already 5 ETFs listed on B3, a few of them positioned among the many most worthwhile in your complete Brazilian inventory market in 2021.

The Central Financial institution of Brazil additionally introduced new developments within the digital actual, a central financial institution digital forex (CBDC), which could possibly be launched as early as 2023. The Brazilian Central Financial institution additionally introduced that it’ll proceed working to include blockchain expertise into its providers by finishing up a sequence of assessments via a devoted group 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 authorized Invoice 2303/15, which establishes standards for the regulation of cryptocurrencies within the nation. The invoice shall 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 additionally some excellent news. 

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

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However, Brazil’s largest change, Mercado Bitcoin (MB) — right this moment one in all 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 extensive 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 comparable to André Abujamra and Zeca Baleiro.

For the subsequent yr, we will anticipate much more main Brazilian and Latin American corporations to enter the cryptocurrency market. The Brazilian Inventory Change hopes to increase its providing of cryptocurrency-linked investments, with specialists 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 recognition and being outlined by social rigidity. The elections might have an effect on not solely the course of the digital actual but additionally the way forward for the Brazilian financial system, together with cryptocurrency markets.