There hasn’t been a shortage of crypto news out of Brazil lately. Crypto adoption in the South American country is progressing rapidly. According to the latest data, a whopping 3.2 million Brazilians were using crypto as of June. In April, that number was just 2 million. This is a significant increase over the last few months.
Brazil is making big crypto moves
The number of Brazilian companies using Bitcoin (BTC) and/or cryptocurrencies is also increasing. As of June, 89,000 registered Brazilian companies were actively participating in crypto-related operations. The rapid adoption of cryptocurrencies is mainly due to the fact that Brazil introduced a new legal framework for cryptocurrencies at the end of June: the Cryptoassets Act.
The government also seems to want to benefit from the booming global crypto sector. The Brazilian government has announced plans to impose a higher tax on cryptocurrencies.
The New law should lead to more tax revenue on foreign crypto assets. For example, Brazilians who have crypto on a currency exchange will have to pay more taxes for it from now on. This policy, in turn, is likely to lead to the promotion of the national crypto sector. The Brazilian Congress will vote on the bill on August 28th.
Drex: Brazil’s digital currency
Brazil also presented its new model earlier this week Central bank digital currencyy (CBDC), a digital version of the national currency. The digital reality will be known as “Drex”. When the Drex will actually be introduced and what functionalities it will have is still unclear.
So, the adoption of cryptocurrencies in Brazil is going fast. According to a 2022 survey by Chainalysis, the country is South America’s crypto leader. Brazil is seventh in the world. For comparison, our own Netherlands ranks 39th. Vietnam was the world leader last year. The crypto gaming sector in particular is gigantic in the Southeast Asian country.