Brazil. 2021 was a watershed year for cryptocurrency adoption

Brazil. 2021 was a watershed year for cryptocurrency adoption
Last year, the Brazilian crypto market finally gained public acceptance, be it in the financial market or even in the nation’s greatest passion: football.

By 2021, Bitcoin was acting as a strong alternative to the Brazilian real, which ended last year breaking negative records and reaching a devaluation of 6.5% by December, making it the 38th worst performing currency in the world.

In a year of ups and downs for Bitcoin, the largest cryptocurrency hit a bottom of 167,000 reals in January and soared with global markets to 355,000 reals in May. Amid Bitcoin’s decline, the BRL/BTC pair was stuck below 200,000 reals by August and began to climb to a new historical high of 367,000 reals on November 8.

Faced with the need for economic protection, Brazilians have turned to cryptocurrencies. According to CoinMarketCap, 10 million Brazilians are currently active in the cryptocurrency market.

Brazil’s Central Bank also announced new developments in the digital real, the central bank’s digital currency (CBDC), which could be launched as early as 2023.

There was tension among the major cryptocurrency players in Brazil in 2021, but there was also good news.

Brazilian exchanges were going head to head with major cryptocurrency exchange Binance. Exchanges across the country have been working with the Brazilian Cryptoeconomy Association to bring Binance into compliance with rules set by the Brazilian Securities and Exchange Commission, the Federal Tax Authority and the central bank. The global exchange is still negotiating with Brazilian market regulators and the country’s financial authorities.

On the other hand, Brazil’s largest exchange, Mercado Bitcoin (MB) – now one of Latin America’s crypto unicorns – has expanded its operations in the country, entering the world of sports once and for all. 

Next year, we can expect to see even more large Brazilian and Latin American companies entering the cryptocurrency market. The Brazilian Stock Exchange hopes to expand its range of cryptocurrency-related investments with experts in decentralised finance (DeFi), NFT and Metaverse.

It is also worth remembering that 2022 is an election year in a country that has been polarised since 2016, with the Bolsonaro government having low popularity and being defined by social tensions. The election could affect not only the direction of the digital real, but also the future of the Brazilian economy, including cryptocurrency markets.

21/01/2022 – Mr.Advice NEWS

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