Exchanges Dominate Brazil’s Cross-Border Crypto Trade
A recent report from the Central Bank of Brazil reveals that domestic exchanges are responsible for the majority of the country’s cross-border crypto trade. The report highlights that Brazilian residents accounted for only 0.3% of international crypto transactions from 2020 to 2022, while domestic financial and non-financial companies made up 99.7% of the trading volume. The study also shows a significant increase in the flow of crypto assets between Brazilian residents and non-residents, reaching $7 billion in 2022. However, it’s important to note that the data provided by the Central Bank mainly includes exchanges’ data, excluding popular peer-to-peer and over-the-counter trading methods.
Brazil Sees Rising Crypto Adoption
The Central Bank has been tracking capital flows in the crypto sector since 2017. Recent data shows a surge in volumes, with $184 million recorded in August 2023. Although volumes dropped to $45 million in September, they increased to $55 million in October and rose by 85% in November. However, the report does not account for international peer-to-peer and over-the-counter trading, which are popular in Brazil. Despite a decrease in trading volumes since the peak of $161 million in 2019, there has been a rise in adoption as Brazilians have become more active on exchange platforms. In fact, they executed 68.7 million cross-border crypto transactions in 2022.
Hot Take: Brazil’s Growing Crypto Market
The Central Bank’s report highlights the dominance of domestic exchanges in Brazil’s cross-border crypto trade. While individuals accounted for a small fraction of international transactions, domestic companies represented almost all of the trading volume. The country has seen a significant increase in the flow of crypto assets in recent years, reaching $7 billion in 2022. Although the data provided by the Central Bank does not include popular peer-to-peer and over-the-counter trading methods, it indicates a rise in adoption as Brazilians have become more active on exchange platforms. With Coinbase focusing on expanding in Brazil, the country’s crypto market is poised for further growth.
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