Brazilians bought more than $4 billion in crypto only this year
The country’s growth in the crypto market is unquestionable and numbers continue to be steady as provisions confirm possible increases
The Brazilian Central Bank released a report recently confirming that the country's investors have bought more than $4 billion in cryptocurrencies only in 2021.
The peak of those purchases happened in May, when the amount of $756 million were bought, and even though those numbers decreased, they continue to be steady throughout the year.
The one-way flow
Bruno Serra, Director of Monetary Policy in Brazil’s Central Bank, stated that the consumption of cryptocurrencies still is a matter of a “one-way flow”, meaning that the country only imports but does not produce crypto because of energy costs.
Report’s numbers attest Serra’s statements once it shows that outflows of cryptocurrencies reached $15 million (less than 1% of what was brought to Brazil). It also means that it could still reach a $8 billion spot this year.
He also stressed that Brazilian investments on crypto abroad are potentially three times bigger than investments on north-american stocks. This could possibly lead to a $50 billion worth of cryptocurrencies bought by Brazilians.
Cryptos won’t be legal tender in Brazil
Even with all the investment made by Brazilians in cryptocurrencies, the bill that has been approved recently by the Chamber's Special Committee and that now heads to the Plenary for consideration, does not include the plan of making crypto legal tender in the country.
The bill (PL 2303/15) reinforces crypto regulation and focuses on the safety part of it, especially considering recent reports on big schemes and frauds involving cryptocurrencies in Brazil. It also establishes rules on virtual assets’ purchases and operations.
However, the plan of making cryptos a legal tender in the country is not a priority in the bill. Adding to that, the Brazilian Central Bank is aiming at its ‘E-Real’, Brazil’s CBDC foreseen to be released until 2024 that it’s already been under construction by the Central Bank.