Cryptocurrencies are becoming increasingly popular in Brazil
In the largest state in South America, the trade in cryptocurrencies is very much in vogue. For example, while Foxbit, a national online trading platform, is reporting massive traffic flows, investors are not hindered in their work by either the central bank or the government. In Brazil, more people now trade in cryptocurrencies than in equities, funds or commodity futures.
In 2016, Brazil's Bitcoin traded worth $ 160 million. Last year, this sum rose to a proud $ 2.4 billion. The Brazilian cryptomarket Foxbit now has more than 400,000 registered users instead of 100,000. In total, around 1.4 million accounts have been opened in all crypto market places over the past two years. In comparison, there are about 600,000 accounts for brokers in Brazil.
A Foxbit spokesman assumes that his compatriots no longer hide their bills under the mattress, but instead invest their money in Bitcoin and other cryptocurrencies. The buyer layer goes across the company. Traders are both students and sixty-year bus driver, said Eduardo Ferreira the business magazine Forbes. The Brazilian Securities and Exchange Commission discusses the regulation of the crypto trade in the context of a specially opened panel of experts. However, observers currently do not believe that one will follow the example of Japan and thus a strict regulation. Forbidden are only investment funds that want to trade in cryptocurrencies.
Brazil with its own degree program for crypto financings
There are also signs of a persistent crypto type there. The Central Bank of Brazil is currently working on its own blockchain platform. In São Paulo, the master's degree in crypto finance was announced in April. Thus, the college follows the example of MIT, Stanford and other US universities. In addition, XP Investments and CriptoHub are currently preparing to open two more Brazilian online trading venues.
Apparently, the cryptocurrencies are turning mainly the working-class members of the country into self-employed investors. Many Brazilians have only a mediocre or low income and therefore no own investment broker. Therefore, the registration of many Brazilians at a crypto market place seems only logical, especially since they only have to have a bank account and an Internet access. At the same time, many have heard of the large price fluctuations and the associated profit opportunities and also want a piece of the cake. As there is no drastic inflation, this is no reason for the continued interest of many Brazilian investors. The value of the Brazilian Real has declined again in recent months compared to the euro. However, the financial and economic crisis is far from being as drastic as it is with neighboring Venezuela.