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The Brazilian cryptocurrency BRZ grew by almost R$120 million in February 2021. In all, Brazilian exchanges reported to the IRS the movement of R$ 320 million in BRZ that month. The performance reflects the increased demand by users in the exchanges where BRZ is listed, mainly on FTX. In addition, the bitcoin price grew 27% that month.

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BRZ position among cryptoassets in Brazil

Considering the other cryptoassets, the Brazilian cryptocurrency was the third most traded stablecoin and the seventh-placed, taking into account bitcoin and the other altcoins. Thus, it maintained the position achieved in January in the Brazilian market.

“BRZ was created with the idea of being the first digital asset-backed in a currency of an emerging country, in this case, the Brazilian real. Our vision is in line with the international movement of countries such as China that have understood the importance of having national currencies reflected, in a way, on the blockchain. The digitization of the economy is inevitable”, says Thiago Cesar, CEO of Transfero Swiss.

What is BRZ?

The BRZ is the largest stablecoin pegged to a national currency in Latin America. As it is a stablecoin, 1 BRZ is always worth R$ 1. Market agents maintain this parity based on reserves held by the Reserve Manager.

What is BRZ for?

The BRZ allows cryptoassets investors to access decentralized finance platforms and international crypto asset exchanges without being exposed to the volatility of bitcoin. Suppose the user wants to buy a cryptocurrency that is on an international platform that does not accept deposits in reais. In that case, he can do so through the BRZ as long as the Brazilian cryptocurrency is listed on that platform.

Is it possible to have income in BRZ?

Unlike Vira-Lata Finance’s Brazilian cryptocurrency, $Reau, BRZ is not a speculative asset. Therefore, it is not possible to earn income with it. In practice, the BRZ is a means of accessing decentralized finance platforms and international exchanges more quickly and cheaply.

Is BRZ a digital currency of the Central Bank?

The Central Bank has a project under development for a Brazilian digital currency, but the BRZ is a stablecoin issued by Transfero and has no relation to the federal government.

BRZ was the most traded Brazilian cryptocurrency in 2020

In 2020, the volume of transactions with the BRZ totaled approximately R$ 1.5 billion. Thus, the Brazilian cryptocurrency closed the year just behind ether (ETH). Among stablecoins, the token is the third most traded, second only to tether (USDT) and USDC, and the sixth most traded cryptocurrency, ahead of litecoin (LTC) and bitcoin cash (BCH).

The main traders in BRZ are individuals and companies that trade in various exchanges  in the cryptocurrency market. For example, people who move funds between exchanges to invest in a particular crypto asset or hedge against bitcoin price volatility at times of more significant market nervousness. Most of the holders – about 90% – are Brazilian investors.

BRZ was a cryptocurrency created with the idea of being the first digital asset-backed in a currency of an emerging country, the Brazilian real.

The Federal Revenue Normative Instruction number 1.888/2019 provides that Brazilian cryptocurrency exchanges report all transactions above R$ 30.000,00 carried out on their platforms in one month. In addition, individuals and legal entities that carry out transactions without the intermediary of brokers or firms located abroad also need to provide this information to the Revenue whenever they exceed that amount.

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What are stablecoins?

Stablecoins are cryptocurrencies that track the value of some sovereign currency, such as the dollar, euro, or yuan. A token holder can either exchange it for traditional money on selected exchanges or trade it against other digital asset pairs, the main one being bitcoin. The main advantage of a real-backed stablecoin is the possibility of accessing the international crypto asset market without being exposed to bitcoin’s short-term volatility.

BRZ maintains audited reserves equivalent to the volume of tokens issued in government bonds denominated in Reais, which allows the value of each token to be R$ 1. These reserves are reported in the BRZ Transparency Portal, which includes transaction volumes, the number of wallets that hold the asset, treasury and circulation tokens, and assets in reserves, among other information. The token price is kept stable by the very performance of market agents based on these reserves. The token is listed on exchanges located in Brazil, Europe, China, and the United States.

How to buy cryptocurrencies in Brazil?

The BRZ is a faster way to access the Brazilian and global cryptocurrency markets. To buy the BRZ, you must have an account at one of the exchanges where it is listed. Among them are FTX, Bittrex, and Novadax. All of them allow the purchase of the Brazilian cryptocurrency, which can be exchanged for another digital asset when the investor deems most appropriate.