Brazilians have brought more than $ 4 billion worth of cryptocurrency to the country, according to figures from the Central Bank of Brazil. The presented trade asset balance report shows that Brazilians have steadily acquired over $ 350 million worth of cryptocurrency each month since January. However, according to some central bank analysts, that number has the potential to double its value this year.
Brazilians buy millions of cryptocurrencies every month
The Central Bank of Brazil released a report that shows Brazilians have bought more than $ 4 billion worth of cryptocurrency imports since the start of the year. The report, which shows that cryptocurrencies are part of the merchandise trade balance, shows that these imports have held more than $ 350 million since January. The peak of the cryptocurrency buying frenzy came in May when crypto purchases hit $ 756 million in that month alone.
Since then, the number of purchases has declined, reaching nearly $ 500 million last August. September figures are not yet available, so it is impossible to determine if the downward trend continues. Brazilians have been drawn to cryptocurrencies, and according to Bruno Serra, director of monetary policy at the Central Bank of Brazil, this interest is unlikely to fade in the future.
Serra said Brazilians’ cryptocurrency investments abroad could potentially triple the amount invested in U.S. stocks. However, Brazil is currently unable to produce cryptocurrencies. In this sense, Serra pointed out:
It’s a one-way flow. Due to the cost of energy, Brazil does not produce cryptoassets, it is just an importer.
And the numbers back up his claims. According to the same report, cryptocurrency outflows just hit $ 15 million, less than one percent of what entered the country.
It is possible that that number of admissions will reach over $ 8 billion this year, Serra concluded.
How are the numbers compiled?
The Central Bank of Brazil registers cryptocurrencies as goods, and its inflows and outflows from the country must be recorded in statistics. The bank estimates these figures on the basis of foreign exchange contracts. These are legal instruments that record the negotiations between buyers and sellers, as stipulated by the bank.
But these instruments simply record the cryptocurrency buying and selling that occurs between residents and non-residents, so the actual numbers could be much higher than reported.
What do you think of the report on cryptocurrency inflows and outflows by the Central Bank of Brazil? Tell us in the comments section below.
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