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The potential of crypto-currencies in Brazil

Posted 2021-12-21 The potential of crypto-currencies in Brazil

Since the advent of bitcoin a little over a decade ago, the use of crypto-currencies has been gaining ground around the world. Brazil is no exception to this trend.

Accepted as legal tender by some, banned or restricted by several others, and regulated by a few, over 7,500 different crypto-currencies are listed on the stock market.

The good news for crypto-currency users is that the digital asset can be traded in major countries such as Canada, the United Arab Emirates, the United States and Germany, among others.

As a result, the use of crypto-currency is gaining momentum, especially in Brazil. Recently, Roberto Campos, the governor of the Central Bank of Brazil, announced that Brazilians own about $40 billion in crypto assets. But then, what is the use of crypto currency in Brazil? Check out our article to learn more.

The influence of Bitcoin in Brazil

You can find on the internet several lists of companies that already accept cryptocurrency as a form of payment. On the other hand, in Brazil there are still a small number of establishments that accept this payment method, both in physical stores and online. 

The construction company Tecnisa was a pioneer in accepting Bitcoin in the purchase of its properties. Other companies also accept Bitcoins, such as Microsoft, which accepts payment in the Windows Store and Xbox Store, to purchase games, software, movies, and applications. 

What are the benefits of using this crypto-currency ?

With the Internet, borders have been abolished, and the ability to sell products to a wide variety of customers spread across the globe makes the use of virtual currencies like bitcoin more necessary, especially in the case of overseas sales. 

The use of crypto-currencies is a great help in reducing costs for retailers, especially by reducing the time they have to wait to receive the sale amounts. The technology used in these transactions, known as blockchain, makes transactions virtually immediate. 

The cryptography used in bitcoin is extremely complex, making it difficult to counterfeit. This is an excellent choice for businesses that intend to increase their participation in international markets.  

One of the great arguments in favor of Bitcoin, highlighted by online shopping users, is precisely the variety of payment methods. An e-commerce site that offers Bitcoin as one of the payment options will certainly be ahead of its competitors.

In Brazil, Bitcoin-specific ATMs can now be found.  Customers must have a digital wallet to use the machines. The procedure for making a payment with virtual currency is quite similar to what you already do with your card.

Some stores use intermediaries to convert Bitcoin into cash at the time of purchase. Other stores accept crypto-currencies directly from their virtual wallets.

Another great option is to have a prepaid reloadable cryptocurrency card. It can be used in both online and physical stores and works like a debit card. 

Accepting bitcoins as a means of payment therefore offers a number of advantages not only for the merchant, but also for their customer.

Cryptocurrency in Brazil : the example of MercadoLibre 

Amazon’s South American equivalent, MercadoLibre, allows the purchase of multiple items online. Riding the crypto-currency wave, this e-commerce giant will now allow its Brazilian users to buy, sell and store bitcoin and other crypto-assets.

This will be done via the online trading company’s digital wallet: the MercadoPago app (directly integrated with the MercadoLibre website). The latter already existed to allow the platform’s customers to obtain loans, a free credit card and a digital account to make and receive payments, similar to PayPal.

Very recently, a new cryptocurrency bill was approved by the Chamber of Deputies of the Brazilian Congress, and now awaits consideration by the Senate for further approval. The bill calls for the establishment of new penalties for cryptocurrency-related offenses and the creation of a central body to regulate any activity by crypto brokers, reportedly the Central Bank of Brazil.

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Author's post: Europartner Accounting