Brazil Anticipates Record Bitcoin Transactions, Boosted by Global Exchanges and Clear Regulations
Summary:
Bitcoin enthusiast and Coinext CEO, José Ribeiro predicts record Bitcoin transaction volumes in Brazil by 2023, bolstered by entry of major global crypto exchanges. He emphasized the importance of regulatory frameworks and anticipates lower interest rates in Brazil to influence Bitcoin prices. Brazil's Central Bank's instant payment system, PIX and the upcoming digital currency, DREX, are expected to elevate Brazil's role in blockchain adoption.
While cryptocurrency may no longer be in vogue, it continues to attract fresh participants to Web3 daily, particularly in up-and-coming markets such as Brazil, says José Ribeiro, a Bitcoin enthusiast and head of the Coinext crypto exchange. At the Web Summit in Lisbon, Ribeiro, conversing with Joe Hall from Cointelegraph, delved into the future of Bitcoin, Brazil's thriving crypto market, and how clear regulations are enhancing competition in the nation's financial services sector.
Ribeiro predicts that Bitcoin transaction volumes in Brazil are set to hit an unprecedented level in 2023, bolstered by major international crypto exchanges like Binance, OKX, and Coinbase setting up shop in the country. "The competitive landscape has grown immensely, which is integral to crypto adoption. The nation has an inflation history, and I anticipate a decrease in interest rates next year for sure, ushering in another cycle," Ribeiro explained.
The baseline interest rate in Brazil currently stands at 12.25%, a reduction from 12.75%, and is projected to drop to 9.25% by December 2024, based on a recent survey by the nation's central bank.
Ribeiro adds that the foreseeably lower interest rates in Brazil, coupled with global factors, like the US' authorization of a spot Bitcoin ETF and the Bitcoin halving, will impact prices. Yet, he emphasizes the crypto community should shift the focus to fundamentals rather than price fluctuations, explaining, "People only become aware of Bitcoin when it's breaking records...but they rarely discuss the fundamentals which have remained unchanged since its inception."
Highlighting the crucial role of regulatory frameworks in propelling innovation, Ribeiro noted, "We are significantly ahead in implementing mechanisms to comply with tax authorities," referencing the monthly reports on exchange transactions submitted to local tax entities.
He further pointed out that Brazilian regulators have shown openness to engaging in discourse about cryptocurrency and payments. "They (Brazil's regulators) comprehend the nature and risks associated with our business, which is beneficial. I'm not saying regulation is inherently good, but it's certainly necessary. We certainly need some rules to stay competitive, particularly when our competition includes international companies who aren't subject to the same tax liabilities," Ribeiro added.
Within recent years, Brazil's central bank has launched PIX, a payment system enabling immediate payments between individuals and businesses. For PIX transactions, all one requires is the PIX recipient's identifying key, like an identification number, phone number, or an email address. Brazil is also developing its central bank digital currency, DREX, anticipated to roll out next year. "This would set Brazil on a new trajectory in terms of Blockchain utilization, making it an underlying framework for the entire financial market.," Ribeiro stated.
Published At
11/16/2023 5:51:56 PM
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