RIO DE JANEIRO, BRAZIL – Brazil is among the top five countries with the most crypto investors. More than 10 million Brazilians, or about 5% of the population, put the country behind only India, the U.S., Russia, and Nigeria.
Although most investors are unaware of or wary of crypto activity, the market is growing exponentially – so much so that it already far outstrips the Brazilian stock market, which has around 4 million investors in B3.
In financial terms, Brazil still represents a small share, about 2% of the global market, which was R$5.4 (US$1.1) trillion in 2021, according to Coinmarketcap, the leading global monitor.
According to the CoinTrader Monitor website, sales were R$103.5 billion, up 400% year on year. And there is much to suggest that the pace of growth is likely to accelerate further this year.
The first sign is the entry of institutional investors, which gained momentum with the launch of the first crypto ETF on B3 last April. ETF stands for “exchange-traded funds,” or index funds whose shares are traded on an exchange.
Many multi-market funds, pension funds, family offices, and private banking clients have begun investing in cryptocurrencies through ETFs, a movement relevant enough that it should spur new initiatives.
“We believe that the convergence of traditional markets with cryptocurrencies is the main trend in Brazil and the world,” says Rodrigo Batista, CEO of Digitra.com, stressing that B3 has recently given signs that it will enter this market.
Another sign of the open expansion is the ability to innovate and create solutions and services in the crypto ecosystem to attract new investors, both for acquiring cryptocurrencies and tokenized assets.”
Tokenization involves converting a real (tangible) asset into a digital asset divided into encrypted units called tokens, whose transactions take place on a blockchain, a decentralized computer network of public records.
“New and revolutionary products are coming to market every day,” says Mayra Siqueira, a representative of Chinese brokerage Binance in Brazil.
With so much interest in the subject, the city of Rio de Janeiro is trying to attract foreign companies and investors to become a center for blockchain development. Mayor Eduardo Paes has even announced that he will offer discounts to taxpayers who want to pay their taxes with Bitcoins.