This article is from www.blocknews.com.br and the original article can be read here in Portuguese
It is not regulation, nor the rise and fall of prices. For Brazilians, the biggest barrier to investing in crypto is the doubt about which platforms are safe and which you can trust. Among professional investors, such as traders and investment companies, it is the only country that appears in this group in the latest Bitstamp Crypto Pulse survey, carried out last March. In most countries it is the risk associated with volatility. In the retail audience, this same barrier also appears in countries like South Africa, Mexico and Argentina.
The report was attended by 5,502 investment decision makers and 23,113 retail investors in 23 countries across the Americas, including Brazil, Europe, Africa, the Middle East and Asia-Pacific. About 65% are from North America and Europe. The survey only considered retail investors who had heard of cryptocurrencies, even if they knew little about it. And it considered the institutional ones that have or control the cryptocurrency strategy of their companies or clients. Thus, it sought to go beyond the prejudices of those who do not know cryptos and take the temperature of the market with those who are participating in the movement of adoption of digital currencies.
According to Bitstamp Crypto Pulse, despite the insecurity regarding platforms, here is one of the countries with the most trust in crypto among retail and institutional investors. Confidence appears in a range just above 75% of respondents. Among retail crypto users, Brazilians are in a group that includes, for example, India. Among the institutional ones, trust is around 80% and it is only lower than that of Nigeria. On the global average, confidence in both groups is in the range of 70%.
Crypto: Most Brazilians Think There Is Regulation
Regarding regulation in Brazil, almost 75% of institutional respondents responded that the crypto sector is regulated, while about 56% of Brazilian retail users think there is regulation. There are rules for the sector, more specifically on tax issues, and the country also uses other general ones, such as money laundering. But, a specific regulation on cryptocurrencies, with concepts still general, is still under discussion in Congress.
Regulation seems to be an important trend and there are several initiatives in this direction around the world. Singapore, for example, has also advanced in this topic, as well as Hong Kong, which has passed legislation on cryptocurrencies. In addition, Australia has started its own path. One of the key points to attract people to cryptocurrencies is to awaken their trust. One of the steps towards this is to make your regulations. However, it alone will not change the situation.
The study indicates the need for more information on the platforms for investors. A very interesting observation shown by the research was that cryptocurrencies go beyond payment options in emerging countries such as India, Mexico and Nigeria. In these places, the population has little access to banking services, so cryptocurrencies are seen as ways of inclusion in the global economy.
Crypto will be commonplace in less than 10 years
Overall, the survey found that people believe in the potential of cryptocurrencies as the future of payments and investments. And nearly 80% of retail respondents and 72% of institutional respondents think crypto will be commonplace within 10 years. Having as one of its objectives to detect the impact that cryptocurrencies have on the lives of people living in developed and emerging countries, the survey indicated that in the latter, trust, for example, is greater. This could be related to issues with local currencies. But in European countries, there are those who believe that cryptocurrencies can pass the euro.
The Crypto Pulse report also pointed out that the more the public knows about a particular crypto asset, the more they bet on it. The survey indicates that a quarter of respondents who claimed to know a lot about cryptocurrencies were almost twice as confident in digital assets as those who knew less.