Brazil has been recently troubled with economic woes and its economic activity fell to a nine month low this February. However, as it has become a trend recently, most of the countries around the globe suffering from economic troubles have looked towards Bitcoin for revival, and Brazil is no different. The Brazilian crypto exchanges have traded 100,000 Bitcoin in the last 24 hours creating a new Bitcoin trading record for the company.
Cointrader Monitor, a Bitcoin movement monitoring portal has recently reported that Brazilian exchanges have traded over 100,000 Bitcoin on April 10. The spike in the Bitcoin trading volume is followed by the price rise of the cryptocurrency during the recent price rally. The total amount of Bitcoin trade came to BRL 2 Billion.
Brazil’s Financial Woes Helped In Increased Bitcoin Trades
Brazil is the largest Latin American economy but its financial woes have been continuing for almost an year. Last February Brazil recorded a 9-month low financial activity, suggesting the state of the country’s economy. Many believe that the troubled economy is one of the causes for the country to look towards the crypto space for revival.
Cryptocurrency despite the criticism that it has received over the years has been helping several financially troubled nations like Venezuela, Zimbabwe, and now Brazil to get their economy back on track.
However, the recent surge in Bitcoin trading has not come with the help of the administration, as it is being reported that the regulators in Brazil have quite a passive stance towards various crypto exchanges operating in the country. Regulators and traditional banks have tried to disrupt various Bitcoin exchanges as the government has given a free hand to the banks to terminate banking services to any crypto exchange at will.
Bitcoin exchanges like Bitcoin Market and Bitcoin Max exchange have seen their bank accounts terminated. However, the passive stance of governance is quite puzzling since the economic condition of the country is getting worse by the day. According to a Reuters report back in February 2019 reads,
“The central bank’s IBC-BR economic activity index, a leading indicator of gross domestic product (GDP), fell 0.73 percent in February from January. That followed a revised drop of 0.31 percent in January, a smaller contraction than first reported.”
The recent surge of Bitcoin trading volumes in the country is being seen as the direct impact of its economic woes. The pattern has been quite similar in other Latin American countries as well, where most of them have turned towards Bitcoin and other cryptocurrencies to help them get past their financial troubles.
The real motive behind the invention of Bitcoin was for the days like these, where the third world countries with no hope of revival by its centralized banking and financial institutions can turn towards a payment system which is not barred by the geographical boundaries or the monopoly of governments. Those who have been saying that there is no real-world use case of crypto must look at these countries to understand what the real vision of Satoshi Nakamoto was behind inventing a peer-to-peer cashless network.
People might argue whether Bitcoin is more prominent as a store of value or a mode of payment, but the main goal of Bitcoin was to help the troubled nations and its citizens to get out of the financial misery put on them by the monopoly of governance and banking systems.