Where does Brazil stand in the cryptocurrencies ecosystem? The country moves the largest volume in transactions with cryptocurrencies in Latin America and yet, Brazilian investors still do not know or choose to enter the national crypto-economics.
According to the strategy manager of Binance, Gin Chao, currently, Brazil is responsible for more than half the volume of negotiations with cryptocurrencies made in Latin America. He also affirms that this percentage can reach up to 65%. Despite this, the rate of Brazilian adherence to crypto technology is still very low, representing less than 1%.
With this, it can be assumed that, if compared to countries that adopt cryptocurrencies on a high scale, Brazil´s path in this market is just beginning. Turkey’s adherence rate for example easily exceeds 10%, which is a substantial figure for an emerging market.
Libra and Brazil in the cryptocurrencies universe
Chao commented on the potential of the Libra of Facebook and made a parallel between the future of Brazil in the crypto world. The executive believes that Brazil could benefit from the entry of the Real in the Libra currencies consortium. That´s because Facebook has pegged its cryptocurrency to a number of currencies and assets in dollar and euro, for example, and including the Real could be a way to increase Brazil’s share in this market.
Chao also stressed the importance of the Brazilian currency for the international market. “The Brazilian real is a very interesting currency. It is also very significant from the point of view of trading. Trillions of dollars are traded in the currency daily”, he says. The BRZ, for example, is a trade alternative using the Brazilian currency.
In addition, the manager gave as an example a practice from China that he believes is very important for the development of the blockchain technology in the country. There, the government offers a program in which students are sent to major colleges in the international technology area, such as Stanford and MIT. Thus, when they return, they are encouraged to put what they have learned into practice.
Cryptocurrencies in Brazil on the path of long-term investment
In Brazil, the blockchain and the cryptocurrencies are still in the speculation phase. He explains that once the country achieves an adherence of approximately 10%, the market will become more stable. In this way, the longest-term investments will take place. For that to happen, this market needs to attract more professional investors and venture capital – investors who expect fast growth and high profitability. So you can get out of the scenario of pure speculation.
Chao states that the scenario will begin to change when investors know the concept of the blockchain. “If investors understand the problems for which the blockchain presents solutions and see in it projects in the long term and economic value, the market will start to grow”, he says.
About the questions on privacy and data security, Chao repunched asking if Brazil is a country that really values data privacy. He explained that he sees this concept as a typically western value.
“In Asian countries, people are happy to share their personal data to have more convenience and better services. I feel that people say they want privacy, but they expose a lot of their personal lives on social networks. I believe that if their data are valued, they accept to share them”.
