The Central Bank of Brazil released a report that shows Brazilians have purchased more than $4 billion in cryptocurrency this year. The highest amount of crypto was bought in May, accounting for $756 million.
In January alone, Brazilians purchased $419 million worth of cryptocurrencies, while August recorded $496 million. The least amount of crypto was purchased in March at $357 million.
Brazilians have been fascinated by cryptocurrencies, and according to Bruno Serra, the director of monetary policy of the Central Bank of Brazil, this interest is unlikely to fade in the future.
The cryptocurrencies highlights the role digital assets play in the country’s economy, especially after the coronavirus pandemic that resulted in the debasement of most national currencies. Brazil’s economy has been hit with a combination of inflation, hyperinflation cycles, and deflation. In such cases, cryptocurrencies helped to reduce the losses against such economic turmoil.
The purchases come in the wake of speculation that the country was planning to declaring Bitcoin a legal tender, following El Salvador’s footsteps. However, Brazil’s lawmakers are debating a bill that seeks to regulate the sector, making it easier for residents to purchase and invest in digital assets. Furthermore, the bill tackles the perennial challenges of scammers related to the cryptocurrency sector.
The younger generation are more adaptive towards cryptocurrency. Brazil’s young population might be a force behind the significant purchases.
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