Regulatory pressure is ascending in Brazil, as the nation witneses a considerable surge in cryptocurrency adoption. According to Roberto Campos Neto, the governor of Brazil’s central bank, the import of cryptocurrencies has experienced a 44.2% growth from January to August 2023 compared to the same timeframe in the prior year. An estimated 36 billion Brazilian real ($7.4 billion) worth of crypto has entered the country within this period.
With rising figures, Neto expresses teaming skepticism, citing that a significant portion of the growth could be linked with tax evasion or illicit activities. In alignment with a growing global trend towards stricter regulation, Neto affirmed that oversight of Brazil’s crypto sector will fortify in the coming days.
Most intriguing perhaps, is the distinct interest of Brazilian citizens in stablecoins. They are gaining popularity, often employed in payment for goods and services. This usage contrasts significantly with the prevailing trend associated with unbacked cryptocurrencies like Bitcoin and Ether, which are predominantly used as investment and savings apparatus.
Banco Central do Brasil, the country’s central bank, continues to ensure regulation of the mushrooming private crypto market and prepares to enter this new-age domain with its own offering – a central bank digital currency (CBDC), a digital form of the Brazilian real.
Coming June, the central bank released a comprehensive “roadmap” for leading events such as monthly webinars ahead of the national CBDC rollout. In partnership with fintech experts and BCB associates, discussions on CBDC rollouts and the outcomes of digital real pilot will be on the agenda.
However, this move into the digital realm was not spared from controversy – in July, a blockchain developer unveiled that the digital currency’s source code would delegate excessive powers to the government – such as freezing accounts or even draining them summarily. Such concerns indicate that while countries like Brazil race to harness the potential of digital currencies, appropriate checks and balances will be crucial in maintaining user trust and safety in this evolving financial landscape.
Source: Cryptonews
