José Ribeiro, the CEO of the cryptocurrency exchange Coinext, recently shared his insights on Bitcoin and the crypto landscape in Brazil during the Web Summit in Lisbon. Ribeiro discussed the vibrant crypto economy in Brazil and the growing competition in the country’s payments sector due to regulatory clarity.
Vibrant Crypto Economy in Brazil
Ribeiro highlighted that cryptocurrency, although considered “out of fashion,” continues to attract new users, particularly in emerging markets like Brazil. He emphasized that Bitcoin transaction volume in Brazil is expected to reach record levels in 2023. Additionally, with anticipated decreases in interest rates, Ribeiro predicts increased adoption of Bitcoin in Brazil.
Competitiveness in Brazil’s Crypto Economy
Ribeiro attributed the heightened competitiveness in Brazil’s crypto economy to factors such as historical issues with inflation and anticipated interest rate changes. He noted that interest rates in Brazil are expected to decline, and this, along with global factors like the approval of a spot Bitcoin exchange-traded fund in the United States and the Bitcoin halving, may impact cryptocurrency prices.
“It’s important to focus on the fundamentals of cryptocurrency rather than just price movements. Bitcoin’s technology fundamentals have remained consistent since its creation,” emphasized Ribeiro.
Ribeiro stressed the significance of regulatory frameworks in fostering innovation, advocating for a level playing field in the market. He also mentioned Brazil’s progress in complying with tax authorities and highlighted the potential impact of the central bank’s digital currency, DREX, on blockchain adoption in the country.
Discussing the regulatory environment in Brazil, Ribeiro affirmed the necessity of having regulations to maintain competitiveness in the market. He acknowledged that Brazilian regulators understand the risks associated with the crypto business and actively engage in discussions about crypto and payments.
Meanwhile, in early October, the Brazilian tax department revealed a significant increase in Tether (USDT) trading volume in the country since 2021, with USDT surpassing Bitcoin (BTC) in volume. According to Brazil’s revenue service agency, 80% of cryptocurrency transactions in the country are now related to USDT, making it the most traded digital asset in 2023.
Brazil has also made significant strides in payment systems, introducing the Pix system, which enables instant payments between individuals and businesses. This system has contributed to the modernization and efficiency of payments in Brazil.
Additionally, Brazil is actively working on the development of its central bank digital currency (CBDC), named DREX. Ribeiro firmly believes that DREX will propel Brazil’s adoption of blockchain technology and position the country as a leader in using blockchain as infrastructure for the financial market industry.
