Throughout 2021, the Brazilian cryptocurrency market managed to distance itself from the police pages and finally gain acceptance among the general public, be it in the financial market or even in the greatest national passion: soccer.
Last year, Bitcoin (BTC) acted as a strong alternative to the Brazilian real that closed 2021 breaking negative records and reaching a devaluation of 6.5% as of December, making it the 38 worst currency in the world.
In a year of ups and downs for Bitcoin, the largest cryptocurrency bottomed out at 167,000 reais in January and soared along with global markets to 355,000 reais in May. Faced with the fall of Bitcoin, the BRL/BTC pair was stuck below 200,000 reais until August, when it began to rise to a new level. historical maximum of 367,000 reais on November 8.
Faced with the need for economic protection, Brazilians turned to cryptocurrencies. 10 million Brazilians now take part in the crypto market, according to CoinMarketCap.
In traditional financial markets, the Brazilian Stock Exchange debuted exchange-traded funds (ETFs) linked to Bitcoin and Ether (ETH). There are already five ETFs listed in B3, some of them positioned among the most profitable in the entire Brazilian stock market in 2021.
The Central Bank of Brazil also announced new developments in the real digital, a central bank digital currency (CBDC), which could be launched as early as 2023. The Central Bank of Brazil also announced that it will continue working to incorporate blockchain technology into its services by conducting a series of tests through a dedicated team at the monetary authority.
In the Federal Congress, discussions on the regulation of cryptocurrencies in Brazil dragged on throughout the year, until in December, federal deputies passed Bill 2303/15, which establishes criteria for the regulation of cryptocurrencies in the country. The bill will be discussed further in 2022 in the plenary session of the Chamber and then in the Federal Senate.
There was tension between the major players in the cryptocurrency market in Brazil in 2021, but also some good news.
Brazilian exchanges went head to head with major cryptocurrency exchange Binance. Exchanges throughout the country worked with the Brazilian Association of Cryptoeconomics to comply with Binance to follow the rules established by the Brazilian Securities and Exchange Commission, the Federal Revenue Service and the central bank. The global stock market is still negotiating with Brazilian market regulators and the country's financial authorities.
Related: 'The mecca of mining: Brazil considers zero tax on green Bitcoin mining
On the other hand, the largest exchange in Brazil, Mercado Bitcoin (MB), today one of The crypto unicorns of Latin America โ expanded its operations in the country, venturing once and for all into the world of sports. MB also worked with Chiliz to make fan tokens more accessible to Brazilian fans, a novelty that was adopted by national soccer giants such as Corinthians, Sรฃo Paulo, Internacional, Atlรฉtico-MG and Flamengo.
The non-fungible token (NFT) market has also arrived in Brazil with wide adoption and presence of Brazilian players in play-to-earn games, collectible platforms and even in the arts, being adopted by visual artists and renowned names in music. Brazilian. as Andrรฉ Abujamra and Zeca Baleiro.
For the next year, we can expect even more major Brazilian and Latin American companies to enter the cryptocurrency market. The Brazilian Stock Exchange hopes to expand its offering of cryptocurrency-linked investments, with experts focusing on decentralized finance (DeFi), NFT, and Metaverse.
It is also worth remembering that 2022 is an election year in a country that has been polarized since 2016, with the Bolsonaro government suffering from low popularity and defined by social tension. The elections could affect not only the direction of the digital real but also the future of the Brazilian economy, including the cryptocurrency markets.
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