In 2024, the Brazilian cryptocurrency market is expected to see a consolidation movement as the investor base expands.
Brazilian Cryptocurrency Legal Framework Approved in December 2022
Brazil will experience a major evolution in the crypto market in 2023, one that will extend beyond trading cryptocurrencies. As the number of users grew, cryptocurrency adoption increased significantly, reaching 4.1 million. Furthermore, the number of women in the industry increased significantly in the first half of this year, according to the Federal Tax Service.
Combined with the growing trend of cryptocurrency adoption, blockchain technology becomes the main solution for realizing the digital economy in Brazil and is used in important projects such as CBDC Brazilians, Drex.
Between January and July 2023 alone, the number of cryptocurrency investors in Brazil increased by 186%. In seven months, the number of users jumped from 1.44 million to 4.1 million. This growth occurred during bear markets and price recoveries for major cryptocurrencies.
By 2024, the Brazilian cryptocurrency market is expected to see consolidation as the investor base expands, and additionally, cryptocurrency trading volumes are expected to increase, such as Bitcoin, as the halving approaches.
Halving and Cryptocurrency Adoption in Brazil
Every four years, the cryptocurrency market experiences an important move in price and volume, catalyzed by the “halving” event. The 2024 Bitcoin halving, expected to take place in April, may have been responsible for the cryptocurrency’s recent brief resurgence, with Bitcoin reaching $40,000 for the first time in 2023.
In addition to affecting the price of major cryptocurrencies, the halving may also stimulate an increase in cryptocurrency adoption in Brazil, following previous growth trends such as those observed in 2020, the year of the last halving.
That year, the number of users in Brazil grew by 100%, starting with approximately 103,000 investors in January and ending with nearly 205,000 investors in December. If the same growth occurs again in 2024, the number of investors in the Brazilian crypto market could exceed 8 million.
This number may become even more significant if we look at the growth of the Brazilian cryptocurrency market in 2023. The user base grew 186% from January to July this year, and maintaining this growth rate will lead to 11 million users in 2024.
Blockchain technology
Blockchain is a solution that can be used for projects outside of the crypto market. This disruptive technology’s decentralized data management system will form the basis for the development of Brazil’s CBDC pilot project.
In 2024, Drex will launch a pilot version during the testing phase. First, the Brazilian CBDC will be developed from Hyperledger created by blockchain technology Besu.
Therefore, blockchain will play a leading role in the creation of the first Drex model. Next year, Brazil’s CBDC may be tested on digital currency exchanges via Pix, which would lead to an integration between the instant payment system and the technology that “brings life” to Bitcoin.
In addition to using it to create a digital, decentralized financial ecosystem for the development of Drex, Brazil will also explore another benefit of blockchain technology in 2024, in an area that requires data verification and information authenticity: the digital document create.
With the proposal to unify documents into digital versions, blockchain technology is being used in data management systems to develop digital ID cards.
Last but not least, I must emphasize that the Brazilian securities regulator also plans to conduct a tokenization pilot in 2024, which will affect multiple financial sectors in the country, which may involve real estate, bonds, securities, forestry resources and other industries. strategic importance.
The consolidation of blockchain adoption in Brazil in 2024 is highlighted by Drex’s use of the technology in the digitization of the Brazilian economy, the issuance of digital documents and the tokenization of assets.
women's market
The increase in cryptocurrency adoption is also due to the popularity of cryptocurrency use in the country. In terms of gender, we observe important changes in the presence of female investors in the Brazilian cryptocurrency market.
In January 2023, the share of female investors in the cryptocurrency market reached around 25%, meaning that one in four Brazilian investors is female.
Although the numbers fell in the following months, the number of women rebounded from May to July, growing by nearly 50% in just three months. However, the presence of women continues to expand in terms of transaction volume, with Federal Tax Office data showing that they now account for 16.26% of investors. Despite a slight decrease in the number of women in the first half of the year, female cryptocurrency investors broke records in May 2023, with participation in cryptocurrency trading reaching 18.08% in 2023.
By 2024, women’s influence in the Brazilian cryptocurrency market should continue to grow as trading in cryptocurrencies such as Bitcoin increases and the halving approaches. Additionally, initiatives such as the U.S.’s approval of a Bitcoin spot ETF could impact increased cryptocurrency adoption globally in 2024, including in Brazil. #巴西 #加密市场
