A self-regulated and secure sector, guaranteed by the blockchain. This is how César Trevisan, Head of Business Development at NovaDAX, defines the current stage of the cryptoasset market. According to him, although financial education is still lacking in Brazil, more and more people see opportunities in the crypto universe to simplify their transactions or protect their assets from inflation. “I can say that practically all major investors today have cryptocurrencies in their portfolio”, he said.
According to Trevisan, bitcoin still accounts for the largest share of investments, although other cryptoassets are gaining prominence. “Therefore, it is important to know the project, to understand what it proposes. Often, those who buy a currency that is prominent in the market are at risk of arriving late, buying at the end of the high. So education and knowledge are critical”, highlighted the expert. Check out the main excerpts from the exclusive interview with Panorama Crypto.
Why do you claim that the market is evolving?
Three years ago, the market was sidelined, there was a lot of mistrust. Today this has changed; users already feel safe to invest. An example is the fact that several companies, including some in Brazil, are converting part of their cash into cryptoassets, as a way to preserve the capital against inflation.
The industry, besides following the rules of Normative Instruction (IN) 1888, is self-regulated. We adopt the best regulatory practices, such as money laundering prevention, strict policies for customer analysis, heavy technological investment, monitoring of transactions, both in cryptocurrencies and fiat currency, among other actions. We are self-regulated, but highly professional.
We also already have in Brazil funds recognized by the CVM ( Securities and Exchange Commission), which means that crypto assets are recognized as financial instruments. In addition, ABCripto, which brings together and represents the leading players in the market, has proposed regulatory guidelines to the government, based on examples from other countries, with good receptivity. Therefore, the exchanges are not on the opposite side of the government.
The government itself (BC) is studying the creation of the digital real. So what does this mean for the crypto market?
I think it’s going to be great for our market. The crypto sector operates 24 hours, seven days a week. However, until the introduction of PIX, customers could only make deposits and cashouts according to the bank clearing schedule. With PIX, this issue has improved, and the digital real should follow the same path.
However, I see no competition. The real will not be traded in exchanges and should circulate only within Brazil, while a cryptocurrency, such as the BRZ, can be transferred anywhere. NovaDAX, for example, is the exchange that has the largest number of pairs with BRL in the Brazilian market, which demonstrates the freedom and convenience of investments, exchanges, etc. The idea is different, and the philosophy is different. There may be inflation, several other things, but crypto is decentralized, it has no government control for its emission, which keeps it away from inflation anyhow.
I would say that the success of cryptocurrencies made governments start to plan the introduction of CBDCs (digital currencies issued by central banks).
In your view, why aren’t cryptoassets used on a larger scale in the country?
Because financial education is still lacking, and technology ends up being a barrier for many people. In the past, for example, there was a lot of difficulty with internet protocols. Still, technology has become embedded in our daily habits, and it is no longer necessary to understand it before using it. But in the case of cryptoassets, technology is still a barrier.
But when the interfaces become simpler, I think the population will start using crypto technology.
Actually, this is also cultural. Until recently, Brazilians didn’t have access to sound investments. The best funds were reserved for those who could make larger financial injections. So, it takes education to change this culture. Nevertheless, the way of thinking is changing, and I believe that more people will migrate to this investment little by little.
Is bitcoin still the main investment?
Considering market capitalization, BTC still dominates, even though it is not the most modern or fastest coin. If it doesn’t represent more than 50% of the market today, it is very close to that (in market capitalization).
Despite the volatility, we realize that the user is more confident and has used bitcoin as a store of value.
We have even seen, at other times, other currencies standing out, like Ethereum, which recently went through an upgrade. But this ends up being a more one-off thing. So, before investing in any cryptoasset, it is necessary to study the project and understand its proposals.
What is your opinion on the role of stablecoins in this scenario?
They represent an interesting solution for various situations, such as international transfers, because the transaction is faster and the cost much lower. However, to make these transfers, users need to be aware of the rules and regulations in force (in Brazil, IN 1888).
One of my first projects at NovaDAX, of which I am very proud, was the listing of BRZ, a work done together with Transfero.
What advantages does NovaDAX offer to customers?
Today we are positioned among the largest exchanges in Brazil, both in volume and number of customers. We are a Brazilian company, created from a Chinese “unicorn”, (Wecash), a company that started the holding company Abakus Group, of which we are part.
NovaDAX started in 2018 in the country, at a time when several exchanges were competing in the market. Still, it has grown throughout this period because of the product offered and by providing an excellent user experience. We believe that this segment is going through a debugging process, and there is a consensus that, in the future, there should be few companies left. Those, in the end, will add value and bring good experiences to customers.
Our vision is to create a financial ecosystem for our clients. In this sense, we were the first company in Brazil to provide a free digital account and a card, Elo flag, which can be used in any commercial premises, including abroad.
Thus, the client can make payments in crypto using his credit card, pay bills with a balance in reais, and any other transaction with a banking interface. In other words, it is possible to pay a bill in a completely transparent way, using your balance in cryptocurrencies with the NovaDAX card. The transaction is converted into reais and allows the user not to dispose of the equity, using small amounts without this concern.