Hi everyone! I am Joao, BBOD’s community manager in Brazil. I will be writing monthly reports about Blockchain and cryptocurrency related news and events in Brazil and Portuguese speaking countries. So, let’s start with the good news about the crypto market in Brazil.
With the recent rise in the price of Bitcoin and several other cryptocurrencies, the market has seen a resumption in the number of crypto trades in Brazil. According to a report released by bitValor, Bitcoin’s April price growth and the consequent bullish trend since then, has contributed to an increase in the number of Bitcoin negotiations in Brazilian exchanges. In June, a new record for the year was registered, with more than 26 thousand bitcoins being traded, totaling more than 1 billion Brazilian Reals (BRL) traded in that period.
Not everything is good news. Despite the large increase in the number of crypto trades in Brazil, and the fact that 36% of Brazilians have some knowledge about cryptocurrencies, only 13% of Brazilians really understand how they work (according to a study conducted by Kaspersky). This lack of knowledge has hampered the crypto adoption process. Among those interviewed, 73% said they had never acquired crypto. Those responsible for the survey concluded that we are still far from accepting cryptocurrencies as a common form of payment.
Another finding was that many people who thought they knew what crypto was, later decided to move away from using crypto. This analysis is based on the fact that 22% of Brazilians stopped using them because they considered it to be “technically complicated”.
According to a statement sent by Kaspersky to the press, 37% of Brazilians revealed that due to the volatility of cryptocurrencies, they prefer to wait for them to become more stable before using them. There is also a common view among consumers that crypto will not last forever. In fact, 13% of Brazilians believe that these coins are only “in vogue” and are not worth considering.
Despite this, 31% of Brazilians stated that although they are not currently using crypto, they would like to use them in the future.
Source: https://www.jornalcontabil.com.br/criptomoedas-apenas-13-dos-brasileiros-compreendem-seu-funcionamento/ & https://fintechlab.com.br/index.php/2019/07/03/pesquisa-revela-que-apenas-13-dos-brasileiros-compreendem-o-funcionamento-das-criptomoedas/ & https://www.kaspersky.com/blog/cryptocurrency-report-2019/
As few people know how cryptocurrencies work, this field of technology and knowledge has a lot of growing to do, as it is very important that people learn about blockchain and crypto. The Brazilian government is already looking at how this technological revolution will be important for Brazil. The civil service examination is now in place to select new diplomats from Brazil that have knowledge about blockchain and cryptocurrencies.
There will be 20 new job opportunities with a starting salary of R$ 19,199.06.
This is not the first time that a civil service examination requires knowledge about crypto. The test for admission to the Federal Regional Court of the 3rd Region, which occurred last year, required having specific knowledge about Bitcoin.
Source: https://br.cointelegraph.com/news/new-diplomats-from-brazil-will-have-to-know-about-bitcoin-and-blockchain-to-enter-the-itamaraty & https://portaldobitcoin.com/concurso-para-diplomata-no-brasil-pede-conhecimento-em-criptomoedas-e-blockchain/ & https://www.portaldoblockchain.com.br/brasil-exige-conhecimentos-blockchain-criptomoedas-novos-diplomatas/
The requirement of knowledge about blockchain and crypto from the Brazilian government, for civil service exams, shows that they are open to cryptocurrencies and law projects. Regulations on crypto are already under discussion in the Brazilian Senate and House of Representatives.
A Bill provides the regulation of Brazil’s cryptocurrency market, with a possibility of up to 12 years in prison for fraud in exchanges, and the need for Central Bank authorization for operations.
Among other things, the Bill 3.825/2019 empowers the IRS to tax digital currency transactions, authorizes breaches of confidentiality for both customers and exchanges, and also requires ads to report the risks of crypto-asset operations.
For customers, the bill provides protection by establishing that users’ money is separate from that of the exchange. Thus, if an exchange gets hacked, the exchange must use their own capital to reimburse its clients. In the case of punishment, the proposal inserts that fraudulent management of crypto assets is a crime against the financial system. With this, the penalty would be from 3 to 12 years of imprisonment, plus a fine.
Source: https://www.infomoney.com.br/mercados/bitcoin/noticia/8463062/projeto-de-lei-propoe-regulacao-de-criptomoedas-e-prisao-de-ate-12-anos-para-fraudes & https://www.criptofacil.com/exchanges-brasileiras-sao-obrigadas-a-responder-questionario-do-cade/
Some positive news surrounding the adoption of crypto and blockchain technology by financial institutions is related to the Brazilian investment bank BTG Pactual. They are in partnership with the fund manager of Dubai Dalma Capital, and together, will use the Tezos blockchain to launch several digital assets called security tokens. According to Bloomberg and the Tezos Foundation, BTG plans to sell US $1 billion worth of tokens.
Several national platforms are working on the integration of a stablecoin, based on Real BRL, according to information which has not been confirmed by the platforms. The companies PagCripto, Nox Trading, 3xBit and Bitcambio would be the first to integrate RealT, a national stablecoin, built in Ether.
The above companies have already been working with the stablecoin at their OTC tables. Traders, brokers, and p2p sellers are also already using the stable crypto, supposedly to ease the conflict with the banks.
Rhizom is an ecosystem of marketplaces constructed over a totally new blockchain that carries a series of innovations to stimulate decentralization and profitability.
The ecosystem has already been built and counts with four B2B2C marketplaces, a dedicated payment structure, market-oriented smart contracts, a new type of delegate scheme, and economically sound dividend distribution model.
It has an API-based structure, which allows plug and play integration of new marketplaces, which will benefit from free transactions and diminished overall friction of both local and international trades. The solution promises to be the main ecosystem that offers products (networks and framework) and services (customization and implementation) based on this new protocol and other interconnected layers. Rhizom aims to reduce the complexity and time of development in applications with it’s innovative architecture to reduce development costs.
Rhizom has the goal of creating more distributed networks through a 360º physiology which allows companies, suppliers, professionals and clients to interact freely to exchange values.
It will offer solutions and products for the development of new applications that are starting to build the WEB 3. For the end user, Rhizom offers a set of networked applications, that also provide effective and reliable products and services for specific needs. For businesses, it has a highly customizable set of tools for rapid integration and greater efficiency, allowing for example, more efficient development of new P2P marketplaces, with several differentials such as public or private transactions, immutable user reputation, and hybrid payment systems (FIAT or Token). In addition to several other modules for payment systems, library of smart contracts for various use cases, asset tokenization with management panel, certification and immutable traceability of productive chains.
There are several legal developments to regulate cryptocurrency and exchanges that are being discussed. Brazilian politicians are looking at how blockchain technology and crypto will affect society. Companies are working on expanding the adoption of blockchain technology and crypto-asset technologies. The future looks promising for crypto in the Brazilian market.
I hope you enjoyed this post!
We at BBOD thank everyone for reading and we look forward to seeing you again for the next issue with more fresh news on the crypto market.
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