According to the Central Bank of Brazil, Brazilians have brought over $4 billion in cryptocurrencies into the country. According to the commercial asset balance report, Brazilians have consistently purchased more than $350 million in cryptocurrencies each month since January. However, according to some central bank analysts, this figure has the potential to double in value this year.
Every month, Brazilians spend millions of dollars on cryptocurrency.
According to a report released by the Central Bank of Brazil, Brazilians have spent more than $4 billion on cryptocurrency imports since the beginning of the year. The report, which includes cryptocurrencies in the commercial balance of goods, shows that imports have remained above $350 million since January. The cryptocurrency buying frenzy peaked in May, when crypto purchases totaled $756 million in just one month.
Purchases have dwindled since then, reaching close to $500 million last August. Because September data is not yet available, it is impossible to determine whether the downward trend continues. Brazilians have been enticed by cryptocurrencies, and this interest is unlikely to fade in the future, according to Bruno Serra, director of monetary policy at the Central Bank of Brazil.
According to Serra, Brazilian cryptocurrency investments abroad could potentially triple the amount invested in American stocks. However, Brazil is currently unable to produce cryptocurrencies. In this regard, Serra emphasized:
It’s a one-way street. Brazil does not produce cryptoactives; instead, it imports them due to the high cost of energy.
And the data backs up its claims. According to the same report, cryptocurrency outflows have only reached $15 million, accounting for less than 1% of total cryptocurrency inflows into the country.
This year’s inflows have the potential to exceed $8 billion, according to Serra.
How are the figures compiled?
Cryptocurrencies are classified as goods by the Central Bank of Brazil, and their inflows and outflows from the country must be recorded in statistics. The bank calculates these figures using exchange contracts as a starting point. These are legal documents that record negotiations between buyers and sellers, as specified by the bank.
However, because these instruments only record cryptocurrency purchases and sales between residents and non-residents, the actual numbers could be much higher than those reported.