Brazil is the 7th country that uses cryptocurrencies the most, says study

Brazil has become the seventh largest global market in cryptocurrency adoption, being the first among Latin American peers, according to the “Global Crypto Adoption Index 2022” study published this Wednesday (14) by the data platform Chainalysis.

The country advanced seven positions in relation to last year’s survey, when it appeared in 14th position. “We want to highlight countries where individual investors, not professionals, are most embracing digital assets,” the study says.

The survey considers a series of criteria, such as the volume of cryptocurrencies traded by retail brokerages (exchanges), and the per capita income level of the population of each country.

The platform’s data reinforces the scenario that the crypto winter experienced by bitcoin and its peers over the last few months has not hampered the plans of Brazilian companies to launch platforms for the trading of cryptocurrencies, nor has it cooled customer demand.

Nubank, BTG Pactual and XP Investimentos recently announced the start of offering services related to the crypto market, and large banks, such as Santander and Itaú, have created or are planning initiatives in the area.

The bet on the disruptive potential of the crypto universe in the medium and long term makes companies and individual investors not feel discouraged by the strong price correction recently verified — the main cryptocurrency on the market, Bitcoin accumulates a devaluation of about 56% in 2022, until September 13— in a context of rising interest rates in developed markets.

Vietnam and the Philippines lead the ranking prepared by Chainalysis of countries with the highest level of cryptocurrency adoption, followed by Ukraine, India, the United States and Pakistan.

In addition to Brazil, the top 10 also includes Thailand, Russia and China.

The experts responsible for preparing the study point out that the Chinese government’s ban on cryptocurrency operations in September 2021 seems to have been ineffective – in the previous ranking, the Asian giant occupied the 13th position.

Emerging companies occupy 18 of the top 20 positions in the ranking

Emerging countries dominate the top positions in the ranking, occupying 18 of the top 20 positions — the exception being the United States and the United Kingdom (17th place) — indicating that they have the populations most susceptible to the adoption of cryptocurrencies.

According to the survey, people living in emerging countries have greater confidence in the use of cryptocurrencies to send remittances abroad and seek ways to preserve wealth in times of high volatility in local currencies.

The study also indicates that the general adoption of cryptocurrencies on a global scale has declined over the last few months, in line with the sharp drop in asset prices, but still remains at levels above those observed in mid-2020 – when the movement of cryptocurrencies began. prominent rise in bitcoin and its peers in the wake of the outbreak of the pandemic.

In addition to stimulating digital transactions with people isolated at home, the flood of liquidity promoted by governments across the world has also contributed to the rise in cryptocurrency prices over the past two years.

The beginning of the process of reversing this posture of injection of resources by the governments, to combat the persistent inflationary pressure, has made that the digital assets have been experiencing the price correction observed more recently.

The Chainalysis study further indicates that the global adoption of cryptocurrencies by countries reached its all-time high so far during the second quarter of 2021.

“The data suggests that many of those attracted by the price increase in 2020 and 2021 remain and continue to invest a significant part of their resources in digital assets,” the report points out.