Brazil will predominantly find itself in the headlines of the sports pages this month, for good or bad. But the greatest footballing nation on earth is also establishing a name for itself as a global leader of another kind.
In recent years cryptocurrency use has exploded in Brazil, to the point where more crypto trading accounts are being opened than traditional securities.
Blockchain tech is deployed inside government bureaucracies as a safeguard against corruption while Brazilian citizens can already use crypto to pay for bus fares, and the government is currently in the process of building their own Ethereum-based decentralized app to help with digital voting.
Brazil’s rapid ascension to crypto dominance should come as no surprise. It already represents one of the fastest-growing digital media markets in the world and following the furor of recent corruption scandals, the nation’s GDP growth has increased year on year since 2016.
So how has Brazil managed to find itself as a global hotspot for cryptocurrency?
Crypto Exchanges
According to the Bitcoin Wiki, there are currently 12 Brazilian-based crypto exchanges, with more popping up constantly, like CriptoHub earlier this year. The Huobi exchange recently set up operations in Brazil and started recruiting tech experts in São Paulo soon after.
The rush towards Brazil was no doubt triggered by the apparent ‘wild west’ mentality that surrounds the crypto world there. The Brazil Central Bank announced in December that it saw no reason to regulate cryptocurrencies, and this must have seemed like music to the ears of crypto-based firms the world over.
Widespread Use
Two bus companies have already started to accept crypto payments in the form of Bitcoin, Litecoin and Bitcoin Cash.
Brazilian market stall sellers are known for their embrace of cryptocurrency, using it to conduct their everyday fruit and veg sales.
And it’s not just young people or tech whizz-kids who are getting into crypto. The average citizen, who may once have hidden his money under his mattress, is now using cryptocurrency as a reliable store of value.
Government participation
While other world governments continue to be wary of the technology, the Brazilian government has not been shy about making inroads into blockchain and cryptocurrency.
In January, the state’s technology arm began using blockchain tech to oversee the country’s land title system. The previous system allowed corruption to flourish and saw acres of rainforest illegally cut down to make way for private interests.
January was a busy month for the Brazilian government, as they also announced plans to build and launch an Ethereum-based app to help them with voter registration and digital elections.
Corruption will find it harder to flourish if data and records are immutably logged on a transparent and secure ledger. Blockchain tech is slowly showing itself to be a possible game changer, both in Brazil and beyond.
The future for Brazil and Latin America
As the largest economy in South America, whatever Brazil does often gets picked up by its neighbours.
Indeed, the cryptocurrency market in Latin America has already started to take off in recent years with the most well-known South American cryptocurrency probably being the Venezuelan Petro.
While Petro is making the news for all the wrong reasons, the rest of Latin America is adopting blockchain and the continent is fast becoming a world center for the young, rapidly growing technology.
Stay tuned for a continuation of this look at crypto’s expansion throughout Latin America, with articles on Argentina, Colombia, Peru, and more LatAm countries coming up in the near future.
