Time is right to expand in Brazil, says Bybit
Cryptocurrency exchange operator Bybit has started to expand in Brazil after entering the South American country in late April.
Bybit moved into Brazil quickly after the Brazilian Senate approved a crypto bill. Bitcoin (BTC), ether (ETC), the cryptocurrency backed by the Ethereum blockchain network; litecoin (LTC), and tezos (XTZ) are some of the digital coins that trade on the Bybit exchange.
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Law could spell mass adoption
If the bill becomes law, Brazil would be one of the biggest countries in the world to make crypto more common in everyday life.
“To deliver next-level user experiences for our Brazilian community, Bybit is stepping up localization efforts and building a local team with homegrown talent to lead the expansion,” a Bybit representative in Brazil told Capital.com. “With international standards of services and a robust global network already in place, the value of local insights and expertise will help Bybit meet its customers’ demands and expectations in Brazil.”
The bill gives the Brazilian government the option of choosing the country’s securities regulator, central bank, or a new crypto-specific body to oversee the sector.
The Bybit representative called the bill “a promising development in regulatory clarity,” and said it will ultimately help to increase adoption of cryptocurrency in the country while outlining the responsibilities of crypto service providers.
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Brazil already has one of the highest crypto adoption rates in the world. A jaw dropping 41% of Brazilians own some form of cryptocurrency, tied for top spot with Indonesia, according to a Gemini survey conducted in April.
“Bybit takes a customer-centric approach on its strategic planning, and Brazil stands out as an important market based on user demands and community feedback gathered by the platform,” said the Bybit representative. “Different sources and reports point out that there are tens of millions of Brazilians already exposed to cryptocurrencies, so the rising popularity of digital assets is an incontestable trend in Brazil.
“This is definitively the right time to expand to Brazil and put together a dedicated team in this market.”
Brazil is currently the sixth most populous country and has the ninth-largest economy in the world as well as the largest in Latin America, said the Bybit representative. And, considering these conditions, plus the increased adoption of cryptocurrency, the regulatory framework that is being outlined and Brazi’s current macroeconomic situation, some analysts are already talking about a crypto boom in Brazil.
Since Brazil is a relatively young society with a population that has more than 50 million under the age of 17, crypto is a future-forward industry and it can be expected to grow behind generational changes, the company representative added. Furthermore, as more digital natives enter the workforce and utilize cryptocurrencies, the increasing demands of the virtual economy can create an economy of scale for crypto.
With crypto-related transactions on the rise in the country, future-focused traders will need all the support technology has to offer, said the Bybit representative, adding that the company is also investing heavily in cybersecurity measures. Brazil is also examining the possibility of creating a central bank digital currency (CBDC). The Bybit representative said CBDCs will have a significant impact on the future of finance, particularly in the buying and selling of digital assets and securities. And, as more people make digital transactions, the trading of crypto assets on exchanges like Bybit is likely to increase.
The development and implementation of digital government money is not necessarily a trend or a development that can be marketed, contended the Bybit representative.
In April, Markus Levin, co-founder of XY Labs, the company behind the XYO cryptocurrency, told Capital.com that Brazil’s proposed crypto law will attract many companies from outside the country.
In March, Chia Network president Gene Hoffman told Capital.com that Brazil and other Latin American markets are likely to be early adopters of crypto technology.