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Bitcoin, Cryptocurrency, Featured, News

Crypto Investment in Brazil Crosses $4 Billion Ahead of Legalization Talks

Crypto enthusiasts in Brazil are making rapid investments in cryptocurrencies, according to the country’s central bank BCB. As per disclosed reports, Brazilian citizens have purchased cryptocurrencies worth USD 496 million in August alone, totaling over USD 4.27 billion in the present year. Federal Deputy Aureo Ribeiro revealed that the country is moving towards Bitcoin legalization. The cryptocurrency regulation bill has already been approved for presentation and discussion. 

Rising Crypto Investment Trends

BCB further reveals cryptocurrency buying patterns peaked in May 2021, with an estimated valuation of $756 million. Suffering a slight dip from the high, crypto acquisition patterns persevered through June and July, at USD 695 million and USD 583 million respectively. Brazilian crypto news outlet Portal do Bitcoin reported a purchase amount of USD 386 million in February and USD 357 million in March respectively. 

On Friday, BCB’s currency policy director Bruno Serra acknowledged an estimated USD 50 billion digital assets accumulation by Brazilian citizens. This is much higher than the current USD 16 billion holding in US stocks. 

Also Read: Bitcoin as a Legal Tender: Here’s Going El Salvador Way!

Brazil Central Bank’s Stance

The BCB director also disclosed the fact that Brazil’s monetary policies implement a tight reign over foreign exchange markets. This allows better regulation and monitoring of digital asset trading. All transactions are traceable due to the presence of mandatory foreign exchange contracts. Crypto investment is an attractive wealth diversification tool for investors. It is safe to assume external investments will thrive in the long run with the relaxation of foreign exchange regulations. 

BCB president Roberto Campos Neto has earlier stated that Brazilians possessed about USD 40 billion in crypto assets. He also mentioned how crypto trading is now a huge global business- attracting the attention of regulators of not only Brazil but also other nations.

Also Read: The Need for a Global Blockchain Council Governing Digital Asset Behavior

Final Thoughts

Portal do Bitcoin reports starting from August, crypto transfer records between Brazilians and foreigners are available in the “Goods” portion of the Central Bank’s payments balance. Following IMF recommendations, the BCB regards digital assets as goods or non-financial and processed assets.  

Due to high electricity charges, it is not feasible to generate crypto assets through mining in Brazil. Rather, the entire country relies on imports through means of investment and trading.

Also Read: Renewable Bitcoin Mining: How Far until Green?

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