BRZ, the token of Transfero Swiss that is pegged to the Brazilian real (BRL), was the most traded Brazilian cryptocurrency in the country in January 2021, according to data provided mandatorily by the exchanges to Brazil’s Revenue Service. January 2021 was also the all-time bitcoin trading record in the country, with a total value of transactions reported to the IRS of BRL 7.9 billion
In January 2021, the volume of operations with BRZ totaled approximately BRL 203 million. Taking into account the other crypto assets, the Brazilian cryptocurrency was the third most traded stablecoin and the seventh placed taking into account bitcoin and other altcoins.
“The BRZ was created with the idea of being the first digital asset-backed by 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 certain way, on the blockchain. The digitalization of the economy is inevitable”, says Thiago Cesar, CEO of Transfero Swiss.
BRZ was the most traded Brazilian cryptocurrency also in 2020
In 2020, the volume of operations with BRZ totaled approximately R $ 1.5 billion. Thus, the Brazilian cryptocurrency ended the year just behind ether (ETH). Amongst stablecoins, the token was the third most traded, followed by tether (USDT) and USDC, and the sixth cryptocurrency with the highest volume of operation, ahead of litecoin (LTC) and bitcoin cash (BCH).
The main traders in BRZ are individuals and companies that trade between various brokers 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 in times of increased market jitters. Most of the holders – about 90% – are Brazilian investors.
The BRZ was created with the idea of being the first digital asset-backed by a currency of an emerging country, in this case, the Brazilian Real
Federal Revenue Normative Instruction number 1.888/2019 provides that Brazilian cryptocurrency exchanges must report all transactions above R$30.000,00 in one month performed on their platforms. Besides, individuals and legal entities that conduct transactions without the intermediation of brokers or in firms established abroad also need to provide this information to the IRS whenever they exceed that amount.
Stablecoins allow you to access the cryptocurrency market without being exposed to bitcoin
Stablecoins are cryptocurrencies that follow some sovereign currency’s value, such as the dollar, euro, or yuan. A token holder can either exchange it for traditional money on selected exchanges or trade it against other digital asset pairs, the main one being bitcoin. The main advantage of a real-backed stablecoin is the possibility of accessing the international crypto-asset market without being exposed to bitcoin’s short-term volatility.
The BRZ keeps audited reserves equivalent to the volume of tokens issued in government bonds denominated in reais, which allows the value of each token to be R$ 1. These reserves are informed on the BRZ’s Transparency Portal, which also shows the transaction volumes, the number of wallets that hold the asset, tokens in treasury and circulation, 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 market. 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 it most appropriate.