Brazilians have purchased more than $4 billion in cryptocurrency this year- Central Bank of Brazil

According to the Central Bank of Brazil, Brazilians have imported over $4 billion in cryptocurrencies into the nation. According to the commercial asset balance data, Brazilians have consistently purchased over $350 million in cryptocurrency each month since January. However, according to some central bank experts, this figure has the potential to quadruple in value this year.

Brazilians buy millions of dollars worth of cryptocurrency

According to a study issued by the Brazilian Central Bank, Brazilians have spent more than $4 billion on bitcoin imports since the beginning of the year. The data, which includes cryptocurrencies in the commercial balance of goods, reveals that cryptocurrency imports have remained over $350 million since January. The cryptocurrency purchasing frenzy peaked in May when crypto purchases totaled $756 million in that single month.

Purchases have declined since then, reaching close to $500 million last August. Because September’s figures aren’t yet available, it’s hard to say whether the downward trend will continue. Cryptocurrencies have captivated Brazilians, and this enthusiasm, according to Bruno Serra, head of monetary policy at the Central Bank of Brazil, is unlikely to wane in the future.

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According to Serra, Brazilian cryptocurrency investments overseas may possibly treble the amount invested in American stocks. Brazil, on the other hand, is now unable to produce cryptocurrency. In this regard, Serra emphasized:

It’s a one-way street. Brazil does not generate crypto actives because of the high cost of electricity; instead, it imports them.

And the data back up its claims. According to the same study, bitcoin outflows have only hit $15 million, or less than 1% of total cryptocurrency inflows.

According to Serra, this influx has the potential to reach more than $8 billion this year.

What Methods Are Used to Compile the Data?

Cryptocurrencies are classified as products by the Brazilian Central Bank, and their inflows and outflows from the nation must be recorded in statistics. The bank calculates these figures using exchange contracts as a starting point.

These are legal documents that record discussions between buyers and sellers in accordance with the bank’s instructions.

However, because these instruments only track bitcoin transactions and trades between residents and non-residents, the true figures might be substantially higher than those recorded.