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Brazilians have brought over $4 billion of cryptocurrencies to the country, according to numbers from the Central Bank of Brazil. The commercial asset balance report presented shows that Brazilians have consistently acquired over $350 million dollars of cryptocurrencies each month since January. However, according to some analysts from the central bank, this number has the potential to reach double its worth this year.
Brazilians Purchase Millions Worth of Cryptocurrencies Every Month
The Central Bank of Brazil released a report that shows Brazilians have purchased more than $4 billion in cryptocurrency imports since the start of the year. The report, which shows cryptocurrencies as part of the commercial balance of goods, shows these imports have been holding over the $350 million number since January. The peak of the cryptocurrency buying spree occurred in May when crypto purchases reached $756 million during that month only.
Since then, purchase numbers have decreased, reaching close to $500 million last August. The numbers for September are not available yet, so it is impossible to determine if the decreasing trend is still happening. Brazilians have been enticed by cryptocurrencies, and according to Bruno Serra, the director of monetary policy of the Central Bank of Brazil, this interest is unlikely to fade in the future.
Serra stated that cryptocurrency investments of Brazilians abroad could potentially triple the amount invested in American shares. However, Brazil is incapable of producing cryptocurrencies currently. In this sense, Serra stressed:
It’s a one-way flow. Due to the cost of energy, Brazil does not produce cryptoactives, it is just an importer.
And the numbers confirm its assertions. According to the same report, cryptocurrency outflows just reached $15 million, less than one percent of what entered the country.
There is potential for this inflow number to reach more than $8 billion this year, Serra concluded.
How Are the Numbers Compiled?
The Central Bank of Brazil records cryptocurrencies as goods, and its inflows and outflows from the country need to be registered in statistics. The bank estimates these numbers taking exchange contracts as the base. These constitute legal instruments that register negotiations between buyers and sellers, as stipulated by the bank.
But these instruments just record purchases and sales of cryptocurrency that happen between residents and non-residents, so the actual numbers could be much higher than the ones reported.