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Brazilians Opening More Crypto Trading Accounts

Brazilians Opening More Crypto Trading Accounts

April 28, 2021 | 

JOHN K MWANIKI |  0 Comments| 

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The crypto market is growing at a rather impressive rate. Brazilians are very welcoming of technology trends. Brazilians are among the biggest users of cryptocurrency. Brazilians open more crypto trading accounts than traditional broker accounts.

The number of Brazilians that are onto bitcoin trading is impressive. People who had not signed up for formal banking are now getting into cryptocurrency

Today, Brazil is the most prominent crypto market in the whole of Latin America. For a long time, crypto had been ignored by the government. Despite that, it is growing.

Why are Brazilians opening crypto trading accounts at this rate?

Brazil may not be on the list of the top 5 wealthiest countries in the world, but it is top of the list of countries that use cryptocurrency the most. Here is why.

1.  It is a digital tech investment attraction

The median age of the Brazilian population stands at 32. The young population is receptive to innovations and technology. This makes the market attractive for financial and digital tech investors.

2. Widespread mobile usage

The widespread mobile usage in Brazil has also contributed to the opening of crypto trading accounts. Already, 81% of Brazilians who own smartphones access their accounts through it. The download rate of mobile banking is also high.

The widespread usage of mobile has paved the way for the adoption of cryptocurrency in Brazil. It is easier for Brazilians to access information on the crypto market now. More so, they can download cryptocurrency apps to support even small-scale trade. 

3. Cryptocurrency adoption by various industries

The adoption by industries in Brazil has contributed further to its acceptance. A major coffee bean cooperative is among the companies setting the pace. The cooperative has plans to launch a cryptocurrency that will help farmers transact. That is, from buying fertilizers, buying assets like autos, machinery, and even food. 

Farmers will be able to use the crypto even through their mobile phones.

4. It will be the to go for options for the unbanked Brazilians

One-fourth of Brazilians are unbanked and rely on cash for the majority of their payments. The main reasons behind them not having bank accounts include the lack of trust in financial institutions. Also, a significant Brazilian population lives below the poverty line. They do not have enough money to open bank accounts. 

They also consider financial services expensive. The lack of necessary documents for opening bank accounts is a challenge too. Due to the mentioned reasons, most Brazilians prefer having crypto trading accounts. This is because they fill the gaps seen with the traditional banks.

They don’t need to have a lot of money to get cryptos. More so, there is accessibility and documentation are not necessary when opening the accounts. Cryptocurrency accounts are trusted more than financial institutions in Brazil. This has seen the wide acceptance of crypto.

5. National currency erosion

Brazilians are living in fear of their assets being eroded by the devaluation of their currency. More Brazilians are turning to cryptocurrency to protect their investments. 

What does the future hold for cryptocurrency in Brazil

It is impossible to deny the fact that the future of cryptocurrency in Brazil is bright. Brazilians are supportive of disruptive technology, and more so cryptocurrency. 

1. Brazilians will open more crypto trading accounts 

Already, Brazil is top five in the list of countries that have adopted crypto the most. The exciting thing about cryptocurrency is that once accepted, growth never stops. As more Brazilians use it for transactions, the more its adoption across the country. 

Other users will adopt it as crypto transactions continue to become the norm.

2. Increased crypto app usage

The high rate of mobile or smartphone usage in Brazil has been a significant anchor of the crypto market. This is an excellent opportunity for investors. Note that most Brazilians do not bank. This is because they consider the financial services inaccessible.

More cryptocurrency apps will be available for the population. This is to meet the growing demand for digital finance to increase adoption further. Already, coffee farmers are transacting crypto through their mobile phones. It is only a matter of time before it spreads across all other industries in Brazil.

3. Regulation of the crypto market

The Brazilian government has finally acknowledged the acceptance of cryptocurrency in the country. Regulation of the growing crypto market has thus been considered a necessary move. The government cannot regulate the blockchain industry. This is mainly because it is not considered a financial industry. Yet, the Brazilian government is still for the idea of regulating crypto exchanges.

This is to ensure that they all operate under a given code. Some of the issues covered will include anti-money laundering requirements. The government might create regulations surrounding mining and taxation and reporting requirements. The government may also explore licensing and owning conditions of the crypto exchanges.

4. Entrepreneurs are building a crypto empire

Entrepreneurs in Brazil continue to build small crypto empires. They will become significant in time to come. We have already seen how crypto has managed to enter the coffee market in Brazil. 

Brazilian entrepreneurs are creating algorithms for trading crypto. Others are working hard to set up crypto exchanges. The mini-empires will grow at almost the same rate that crypto trading accounts are being opened.

Entrepreneurs pumping their resources into the crypto market, mass adoption by Brazil’s young population, and promoting crypto by different organizations will see a boom in this industry. 

Brazilians opening more crypto trading accounts key take away

Brazilians opening more crypto trading accounts means well for Brazil’s population. Users who feel that financial assets may be too expensive or inaccessible for them will have an alternative. Brazilians that do not have financial assets can lean on digital assets.

More so, there is the possibility of Brazilians abandoning traditional financial services and hopping on the crypto bandwagon. Blockchain is an attractive option as it is more affordable. It also eliminates the tedious onboarding processes as seen with banks.

Blockchain has already infiltrated agriculture and the food sector. With time, it will be part of most of the other sectors in Brazil. Education on blockchain technology is also in the pipeline as some universities are already offering it. 

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