2021: A year of mass adoption for cryptocurrencies in Brazil

Throughout
2021,
the
Brazilian
cryptocurrency
market
managed
to
distance
itself
from
the
police
pages
and
finally
win
acceptance
with
the
general
public,
whether
in
the
financial
market
or
even
in
the
greatest
national
passion:
soccer.

Last
year,
Bitcoin
(BTC)
acted
as
a
strong
alternative
to
the
Brazilian
real
that
ended
2021
by
breaking
negative
records
and
reaching
a
devaluation
of
6.5%
by
December,
making
it
the

38th
worst
currency
in
the
world
.

In
a
year
of
ups
and
downs
for
Bitcoin,
the
biggest
cryptocurrency
hit
a
bottom
of
167,000
real
in
January
and
soared
along
with
global
markets
to
355,000
real
in
May.
Faced
with
Bitcoin’s
dip,
the
BRL/BTC
pair
was
stuck
below
200,000
reals
until
August,
when
it
began
to
rise
to
a
new

historic
high
of
367,000
real

on
Nov.
8.

Faced
with
the
need
for
economic
protection,
Brazilians
turned
to
crypto.
10
million
Brazilians
now

participate

in
the
crypto
market,
according
to
CoinMarketCap.

In
traditional
financial
markets,
the
Brazilian
Stock
Exchange
debuted
exchange-traded
funds
(ETFs)
linked
to
Bitcoin
and
Ether
(ETH).

There
are
already
five
ETFs

listed
on
B3,
some
of
them
positioned
among
the
most
profitable
in
the
entire
Brazilian
stock
market
in
2021.

The
Central
Bank
of
Brazil
also

announced
new
developments
in
the
digital
real
,
a
central
bank
digital
currency
(CBDC),
which
could
be
launched
as
early
as
2023.
The
Brazilian
Central
Bank
also
announced
that
it
will
continue
working
to

incorporate
blockchain
technology
into
its
services

by
carrying
out
a
series
of
tests
through
a
dedicated
team
at
the
monetary
authority.

In
the
Federal
Congress,
discussions
on
the
regulation
of
cryptocurrencies
in
Brazil
dragged
on
throughout
the
year,
until
in
December,
federal
deputies

approved

Bill
2303/15,
which
establishes
criteria
for
the
regulation
of
cryptocurrencies
in
the
country.
The
bill
will
be
further
discussed
in
2022
in
the
House’s
plenary
session
and
later
in
the
Federal
Senate.

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

Brazilian
exchanges
went
head-to-head
with
major
crypto
exchange
Binance.
Exchanges
around
the
country

worked
with
the
Brazilian
Cryptoeconomy
Association

to
comply
Binance
to
follow
rules
established
by
the
Brazilian
Securities
and
Exchange
Commission,
Federal
Revenue
Service
and
the
central
bank.
The
global
exchange
is
still
negotiating
with
Brazilian
market
regulators
and
the
country’s
financial
authorities.



Related: ‘Mecca
of
mining’:
Brazil
considers
zero
tax
on
green
Bitcoin
mining

On
the
other
hand,
Brazil’s
largest
exchange,
Mercado
Bitcoin
(MB)

today
one
of

Latin
America’s
crypto
unicorns


expanded
its
operations
in
the
country,
entering
the
sporting
world
once
and
for
all.
MB
also
worked
alongside
Chiliz
to
make
fan
tokens
more
accessible
to
Brazilian
fans,
a
novelty
that
was
adopted
by
national
football
giants
such
as
Corinthians,
São
Paulo,
Internacional,
Atlético-MG
and
Flamengo.

The
nonfungible
token
(NFT)
market
also
reached
Brazil
with
wide
adoption
and
presence
of
Brazilian
players
in
play-to-earn
games,
collectible
platforms
and
even
in
the
arts,
being
adopted
by
visual
artists
and
renowned
names
in
Brazilian
music

such
as
André
Abujamra
and
Zeca
Baleiro
.

For
the
next
year,
we
can
expect
even
more
major
Brazilian
and
Latin
American
firms
to
enter
the
cryptocurrency
market.
The
Brazilian
Stock
Exchange
hopes
to
expand
its
offering
of
cryptocurrency-linked
investments,
with
experts
targeting
decentralized
finance
(DeFi),
NFTs
and
the
Metaverse.

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

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