The South American nation of Brazil stands out among the top 5 countries for having a huge number of crypto investors, with approximately 10 million users. But the recent downfall of FTX had created a high level of doubt and fear among crypto investors and users. Investors are afraid to make a move on cryptocurrency after facing huge losses in the recent FTX collapse. As per the reports, Brazil stands in the tenth position affected by the FTX downfall.
According to the analytics, the FTX downfall had a negative impact on Brazilian users and investors. Still, Brazilian crypto users are utilizing the cryptocurrencies for cross-border transactions.
Transfero’s CEO stated that “a lot of the crypto volume in Brazil derives from players that are willing to exchange their local currency into an internationally liquid asset denominated in dollars. So in that sense, the crypto market will not die down because crypto is just the rails for that.”
In South America, Brazil is the nation that provides the largest digital market platform for trading the popular cryptocurrency Bitcoin. In 2019, the country set a record by trading 100,000 bitcoins in one day in Latin America.
The number of investors who are utilizing digital assets increased from 794,976 in June to 1.33 million in July. The number of companies holding crypto assets showed a growth rate of 6.1%. There were 11,360 holders in June, 11,797 holders in July, and 12,053 holders in August. Recently, companies in Brazil created a record by purchasing more than 12,000 crypto assets within the month of August 2022.
Brazilians are well-versed in digital currency, paving the way for Brazil to take the lead in the crypto world. People in the country prefer cryptocurrency to traditional investments. As per the report in August 2021, the citizens held $50 billion (USD) in crypto when compared to only holding $16 billion (USD) in US dollars.
Brazilian Cryptocurrency Bill
Currently, Brazilian crypto advocates are arguing with the lawmakers to give final approval to the crypto bill, which was recently released by the Senate. “The rules that currently exist have not been applicable to some players, so they can do whatever they want. “The upcoming crypto law would change a lot.”
Due to the general election that was held on October 30, Brazilian administrators ignored the cryptocurrency bill. Now the administration is going to discuss the crypto bill on November 22. The crypto bill mainly focuses on the regulation of digital currency exchanges and custody agents, including detailed mining regulations. Analysts believe that this crypto bill will protect crypto users and investors from the recent massive losses at the FTX crypto exchange.
The CEO of 2TM, Roberto Dagnoni, stated that “if there is a good side, it would be that it gets the law prioritized.” The rules that currently exist have not been applicable to some players, so they can do whatever they want. This would change a lot. In 2019, the Brazilian holding company 2TM Group became the first institution in the world to tokenize public debt assets. In 2020, the company issued Futecoin, the first digital asset based on FIFA’s solidarity mechanism in the world.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/21/despite-ftxs-insolvency-the-number-of-crypto-users-in-brazil-is-increasing/