This article is from cointelegraph.com.br and the original article can be read here in Portuguese
*By Rubens Neistein
Brazilians have a complex relationship with money. Decades and decades of economic crises, political instability, high inflation and low income have caused the majority of the national population to develop some resistance to any innovation or change in the area. After all, as a rule, whenever someone came up with this speech, we lost the hard-earned money we earned from our work. But then came the digital transformation and, with it, some stability in the economy. So, there is an entire generation that has lost its fear and is starting to embrace novelties in this area — which drives cryptocurrencies in the country.
To give you an idea, it is estimated that 5 million Brazilians already have some crypto asset today. It is the same number of individuals operating on the stock Exchange. But while the crypto world took just over five years to reach that number, the stock market took five decades. This volume is likely to increase in the coming months, as research conducted by Sherlock Communications indicates that a quarter of the adult national population expects to invest in cryptocurrencies in the coming months. As you can see, it’s an expanding world.
The trajectory of cryptocurrencies in Brazil followed the same pattern in relation to the rest of the world, albeit with some delay. Until recently, tokens and digital currencies were marginalized, often associated with cybercrime and money laundering. There was the idea that it was something restricted and even illegal. Evidently, this distorted vision gave way to the discovery of the advantages that this universe can bring not only to consumers, but mainly to companies. Thus, there is a large growth in the adoption, implementation and, of course, use of cryptocurrencies.
Today, for example, there is a greater number of companies that make these assets available in their transactions and people are more interested in finding out more about this universe. The Central Bank itself is already studying the creation of a “Digital Real” to serve as an alternative to users. It is at this stage that the country is currently in relation to the digital currency segment.
Thus, the first challenge is to continue popularizing it so that it becomes commonplace for everyone — even those who are still reticent with technological solutions. For this, it is essential to insert it as a form of payment for everyday purchases, reinforcing the practicality, agility and even the savings it provides. If kept only as an investment asset, many people will still have no practical access to it.
Another challenge that emerges with the advancement of cryptocurrencies is the need for legal regulation for their use. Their main difference from traditional fiat currencies is precisely their decentralization, that is, they are not linked to any financial authority. But that does not prevent the country from stimulating a public debate and formulating a legal framework precisely to protect the parties during the negotiations.
It is not about regulating the value of the currency, but about creating mechanisms that inhibit the malicious action of criminals who take advantage of crypto assets to commit crimes. There are already bills that are being processed in the Federal Congress with this proposal – and it is up to the sector as a whole to participate and raise ideas and themes.
Brazilians are starting to develop a healthy relationship with cryptocurrencies and money itself. It is the mission of all players to ensure that this movement will continue in the coming years. With legal security and full use, digital currencies will represent the future that the vast majority of the population has always wanted. In other words, a strong, efficient, safe, agile currency that leverages the family budget, whether as a means of payment or a source of investment income. It’s a scenario where all parties can win.
*Rubens Neistein is Business Manager at CoinPayments
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