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Brazil continues to break its record of spending on cryptocurrencies, with figures approaching almost a Billion dollars.
This may, Brazil recorded crypto transactions to account for a combined $912 million, as per data from the Central Bank of Brazil. These figures are constrained until May, while those for months following that, until August, are yet to be compiled.
Previously, Brazilians spent $756 million on cryptocurrencies, as recorded exactly a year prior. This data too was revealed by the Central bank. This data is recorded in a monthly report that keeps track of all crypto purchases, called Commercial Balance of Goods.
These purchases are categorized as imported goods, as the country believes that the “local production” of cryptocurrencies doesn’t lend a significant hand for them to be considered domestic. The country’s mining efforts are cited to be statistically irrelevant. To improve on the matter, the country is working on its pilot digital fiat, called the digital real.
Digital Real Under Progress In Brazil
The central bank of Brazil is working on its prototype digital fiat, called Digital Real. The testing for this currency is being done behind closed doors as of now, being conducted with crypto, blockchain and banking firms. This currency will undergo real-world testing in 2023.
As mentioned by the President of the bank, Roberto Campos Neto, the testing will continue until the start of the next year. And a proof of concept will be revealed before the real-world testing is done. The real-world testing will run through the entire year, where only a few participants will have access to the limited amount of coins that will be minted.
This project is an attempt by the Bank to improve financial inclusion and particularly cater to unbanked individuals. They haven’t, however, mentioned a deadline for the project. Citing the success of the tests being the determinant of the timeline.
More Than a Million Brazilians Present Cryptocurrency Statements
As per a report from the Brazilian tax authority, more than 1.3 million citizens declared their crypto statements in the month of July since it became a requirement a few years back. This figure is particularly staggering because, in May, 365,000 citizens reported their holdings, while the number rose to 800k in June. An increasing number of Brazilians are partaking in declaring their cryptocurrencies. The numbers for the month of August are, however, yet to be announced.
Additionally, Brazil has also witnessed more participation by women in crypto. Wherein the number of women involved rose by 4%, in total, accounting for roughly 20% of the total transactions made in the month of July.
Information about the preferred coins in Brazil can also be understood with the data from the Brazilian tax authority, where Bitcoin was used in the majority of trades. However, Tether was responsible for moving the most value. Almost 4 times that of Bitcoin.
Although the prevalence of cryptocurrency is increasing in the country, they haven’t yet been able to establish a regulatory framework. Discussions about the bill presented last year remain delayed due to presidential and general elections.
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