By 2021, the Brazilian cryptocurrency market was able to distance itself from the police and eventually gain public recognition, be it in the financial market or even its biggest national passion: football.

Last year, Bitcoin (BTC) served as a powerful alternative to the Brazilian real, which ended up breaking negative records in 2021 and fell 6.5% by December, making it the 38th worst currency in the world.

In a year of ups and downs in bitcoin, the largest cryptocurrency reached R$167,000 in January and along with global markets it rose to R$355,000 in May. In the face of Bitcoin’s decline, the BRL/BTC pair remained below R$200,000 until August, when it began to climb to a new all-time high of R$367,000 on November 8.

Faced with the need for economic protection, Brazilians have turned to cryptocurrencies. According to CoinMarketCap, 10 million Brazilians are currently participating in the cryptocurrency market.

In the traditional financial markets, the Brazilian Stock Exchange first launched Exchange Traded Funds (ETFs) linked to Bitcoin and Ethereum (ETH). Five B3 ETFs have already been listed, some of which are among the most profitable in the entire Brazilian stock market in 2021.

The Central Bank of Brazil also announced a new development in the digital sphere, the Central Bank Digital Currency (CBDC), which could be launched as early as 2023. The Central Bank of Brazil also announced that it will continue to work on implementing blockchain technology in its services through a series of tests with the help of A special group of financial authority.

In the Federal Congress, discussions about regulating cryptocurrencies in Brazil continued throughout the year, until in December, federal lawmakers approved Bill 2303/15, which sets the standards for regulating cryptocurrencies in the country. The bill will be debated in 2022 in the House plenary, and then in the Federal Senate.

There was a lot of excitement among the major players in the cryptocurrency market in Brazil in 2021, but there is also good news.

Brazilian exchanges have entered into competition with the main crypto exchange Binance. Exchanges across the country have worked with the Brazilian Cryptoeconomics Association to comply with Binance in order to comply with the rules set by the Brazilian Securities and Exchange Commission, the Federal Tax Service and the Central Bank. The global stock exchange is still trading with the Brazilian market regulators and the country’s financial authorities.

On the topic: ‘Mecca of Mining’: Brazil Considers Zero Tax on Production of ‘Green’ Bitcoin

On the other hand, the largest Brazilian exchange Mercado Bitcoin (MB) – today one of the Latin American cryptocurrency companies – has expanded its business in the country and entered the world of sports once and for all. MB has also worked with Chiliz to make fan tokens accessible to Brazilian fans. This novelty has been embraced by national football giants such as Corinthians, Sao Paulo, Internacional, Atlético MG and Flamengo.

The market for non-fungible tokens (NFT) has also made its way to Brazil thanks to the widespread presence and presence of Brazilian players in games of earning money, collecting platforms and even art, and it has been embraced by visual artists and big names in Brazilian music such as André Abou Hamra. Zika Ballero.

Next year, we can expect more large Brazilian and Latin American companies to enter the cryptocurrency market. The Brazilian stock exchange is looking to expand its crypto-related investment offering, with experts focusing on Decentralized Finance (DeFi), NFT and Metaverse.

It is also worth noting that 2022 is the year of elections in a country polarized since 2016, with Bolsonaro’s government suffering from declining popularity and being defined by social tensions. The choice may affect not only the direction of digital reality, but also the future of the Brazilian economy, including the cryptocurrency markets.

Source: CoinTelegraph