No products in the cart.
- Latest
- Trending
ADVERTISEMENT
The collapse of the FTX crypto empire may have hurt the sentiments of Brazilian retailers and institutional investors towards cryptocurrencies. However, the impact will not affect everyday citizens who still use crypto for cross-border transactions.
Reflecting on FTX’s recent decline, Thiago Csar, CEO of fiat onramp provider Transfero Group, said that, like many countries around the world, the decline in exchanges has led to a decline in trust in centralized crypto exchanges and crypto in general. said to have injured
Transfero Group is closely tied to the Brazilian cryptocurrency ecosystem and FTX. This is because it was the on/off ramp provider for the exchange’s fiat currency and also the issuer of the Brazilian stablecoin BRZ, which was listed on the now-defunct exchange.
Cesar told Cointelegraph that the collapse of the exchange has taken a great source of liquidity from the market, as FTX ranked among the top three by trading volume.
He also noted that the uncertainty surrounding centralized crypto exchanges has caused a massive outflow of funds from Brazilian exchanges, with many considering self-management.
Many people are even trying to liquidate their crypto positions, but we keep our money in bank accounts.
Csar said the FTX narrative will make cryptocurrency investments hard to sell for new investors and traders.
Of course it is for crypto investors/traders. I’m very skeptical about it.It’s more difficult now,” he said.
But for those who use crypto as a means of cross-border payments and “internationalization of money,” he notes that the collapse of FTX will have little impact.
Much of Brazils cryptocurrency volume comes from players willing to exchange their national currency for dollar-denominated internationally liquid assets. Therefore, the market will not decline.
In October, a Chainalysis report said: remittance payment Fighting inflation is two of the most important drivers of cryptocurrency adoption in Latin America.
Related: Brazil’s SEC is about to change its role in cryptocurrency regulation
Csar said the FTX demise would likely be used by local exchanges “as a lobbying tool” to push for regulation aimed at bringing international exchanges in line.
Csar said these crypto exchanges are pushing regulations in Brazil to “separate” domestic and international exchanges by depriving international exchanges of access to global liquidity books. added.
They were proposing to implement regulations such as, for example, separating the liquidity of the Brazilian real book from the international book.
Csar explained that such regulation would adversely affect international trade. Because the main advantage of international trading is a liquid international global book.
November 18th report According to Reuters, Mercado Bitcoin chairman and CEO Roberto Dagnoni said Brazil’s cryptography was “kind of dormant” during the election campaign, but now it takes precedence. said there was a need.
“The rules that exist now don’t apply to some players, so they can do whatever you want,” he said.
