A Year of Massive Crypto Adoption in Brazil

Throughout 2021, the Brazilian cryptocurrency market has managed to distance itself from police pages, finally gaining public recognition, both in financial markets and in the biggest national passion: football.

Last year, Bitcoin (bitcoin) broke negative records and depreciated 6.5% in December, making it a strong substitute for the Brazilian real by the end of 2021, making it a 38th worst currency in the world.

In a year of ups and downs for Bitcoin, the largest cryptocurrency bottomed out at 167,000 reais in January and surged to 355,000 reais with global markets in May.Facing Bitcoin’s decline, the Brazilian Real/Bitcoin pair stuck below R$200,000 before beginning to rise to new levels in August All-time high of 367,000 reais November 8th.

Faced with the need for economic protection, Brazilians turned to cryptocurrencies.There are now 10 million Brazilians join According to CoinMarketCap, in the crypto market.

In traditional financial markets, the Brazilian Stock Exchange debuted an exchange-traded fund (ETF) pegged to Bitcoin and Ethereum (Ethereum). There are already five ETFs Listed on B3, some of which are positioned as the most profitable in the entire Brazilian stock market in 2021.

The Central Bank of Brazil also Announcing new developments in digital reality, a central bank digital currency (CBDC) that could launch as early as 2023.Brazil’s central bank also announced that it will continue its efforts Integrate blockchain technology into its services A series of tests are carried out by a dedicated team of monetary authorities.

In the federal Congress, discussions on Brazil’s cryptocurrency regulation dragged on all year until December, federal representatives officially recognized Bill 2303/15, which sets the standard for cryptocurrency regulation in the country. The bill will be discussed further in the plenary session of the House of Representatives in 2022 and later in the Bundesrat.

There are tensions among the major players in the Brazilian cryptocurrency market in 2021, but there is also some good news.

The Brazilian exchange goes head-to-head with major cryptocurrency exchange Binance.Exchange all over the country In cooperation with the Brazilian Association of Cryptoeconomics Comply with Binance’s compliance with the rules set by the Brazilian Securities and Exchange Commission, the Federal Tax Office and the Central Bank. Global exchanges are still negotiating with Brazil’s market regulator and the country’s financial authorities.

related: ‘Mining Mecca: Brazil Considering Zero Tax on Green Bitcoin Mining

On the other hand, the largest exchange in Brazil, Mercado Bitcoin (MB) – today is one of them Crypto Unicorns in Latin America — Expanding operations in the country, entering the world of sports once and for all. MB has also partnered with Chiliz to make it easier for Brazilian fans to obtain Fan Tokens, a novelty adopted by national football giants such as Corinthians, Sao Paulo, Inter, Atletico and Flamengo.

The non-fungible token (NFT) market has also entered Brazil, where Brazilian players are widely adopted and present in games, collectible platforms and even in the arts, being adopted by visual artists and big names in the Brazilian music scene such as Andre Abu Jamra and Zeka Valero.

Next year, we can expect more major Brazilian and Latin American companies to enter the cryptocurrency market. The Brazilian stock exchange looks to expand its cryptocurrency-related investment offerings, with experts targeting decentralized finance (DeFi), NFTs and Metaverse.

It’s also worth remembering that 2022 is an election year in a country that has been polarized since 2016, with low approval ratings for Bolsonaro’s government and social tensions. The election will not only affect the direction of the digital reality, but also the future of the Brazilian economy, including the cryptocurrency market.