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Digital currency trends may constantly change, but Brazil appears to have solid support with an innovative spirit and direct regulatory approach. This supportive environment has led to a boom in cryptocurrency purchases in the country, with cryptocurrency imports reaching $14.8 billion over the past 12 months as of March. Amid this growth, Coinbase, one of the world's leading cryptocurrency exchanges, has made significant progress in Brazil. Labeled a “Go Deep” market in Coinbase’s growth strategy, Brazil’s large, tech-savvy population aligns perfectly with the company’s vision. Mike Ermolaev spoke with Fábio Plein, Managing Director of the Americas at Coinbase, to gain deeper insight into how Coinbase is navigating this dynamic market. This conversation, brought to you by GoMining, is part of our ongoing GoCrypto interview series.
Brazil's favorable regulatory environment is starting to pay off.
According to a report by Valor Economico, purchases on foreign cryptocurrency exchanges, considered imports, have hit a new record in Brazil, impacting the country's trade balance. In March, the country's cryptocurrency purchases totaled $14.84 billion annually, up from $12.3 billion the previous year. Additionally, cryptocurrency imports in the first quarter of 2024 were $4.69 billion, an increase of 118% compared to the first quarter of 2023. This growth is mainly due to the country’s favorable cryptocurrency regulations.
Fábio Plein, Coinbase's Managing Director for the Americas, participated in a meeting with the Brazilian government ahead of the announcement of the forward-looking cryptocurrency bill.
“We are encouraged by the constructive attitude of Brazilian policymakers who understand the value of cryptocurrencies and Web3,” says Plein. He emphasizes that public consultation was essential to put together a strong and comprehensive set of rules for the cryptocurrency industry.
He believes that Brazilian legislation can contribute to the development of the cryptocurrency ecosystem, allowing players in the sector to remain innovative. “Key markets like Brazil are working to provide regulatory clarity and essentially set an example for the world. The initiatives launched by Governor Roberto Campos Neto on blockchain, digital assets and other innovations are promising and will help shape the financial markets of the future,” explains Fábio Plein.
Brazil targets growth through young tech-savvy population and strong cryptocurrency adoption
Coinbase sees Brazil as a priority market classified as “Go Deep” in its growth strategy. Plein points out that Brazil's large and young population embracing new technologies is consistent with Coinbase's vision.
“The fact that the country has a large (215 million) and young population (average age 32) embracing new technologies and is ranked 9th in the Global Cryptocurrency Adoption Index (Chainalytic) confirms our vision. give. Our approach globally is consistent with our approach in the United States. We work with governments and regulators in a variety of markets and will always aim to be the most trusted and compliant cryptocurrency company in all markets. Brazil's economy has been much more stable in recent decades. However, the fear of high inflation and its consequences are still remembered in many parts of society. For this reason, we are seeing increased adoption of certain digital assets such as BTC and stablecoins,” he said.
Coinbase's commitment to trust and safety when it comes to products and services starts with security and compliance. As a publicly traded company, Coinbase is transparent about its performance, financial strength and risk management practices, according to Plein. The company holds customer assets on a 1:1 basis and there are no restrictions on customer loan collection or withdrawal. Additionally, the exchange maintains a strong capital position and employs an experienced risk management team.
Coinbase also launched the #AprendaeGanheCripto learning rewards campaign in Brazil. In this campaign, users are rewarded with cryptocurrency for participating in educational content about them. The initiative aims to promote education about crypto assets, a fundamental factor in encouraging the adoption and development of new projects. Fábio Plein said the campaign has benefited about 40,000 Brazilians with 7 million reais ($1.3 million) and is expanding to other cryptocurrency markets globally.
Tailoring products for Brazil with a focus on regulatory clarity and security
Plein highlights Coinbase’s commitment to customizing its products for Brazilian users. “When we say Brazil is a promising market, we are committed to providing regulatory clarity and we believe this will contribute to the development of the cryptocurrency ecosystem in Brazil, allowing players in the sector to remain innovative. This absolutely includes us. “It works,” he says.
Plein highlights the Pix integration for easy account replenishment using Brazilian real, making the cryptocurrency economy more accessible to Brazilians.
“In Brazil, we not only operate under local transparency and compliance standards, but we also operate under the same security and transparency standards that apply globally, making us the most trusted and secure exchange. Additionally, we have over 50 transparency and compliance licenses and approximately 8% of our employees are dedicated to security and safety globally,” he asserts.
Aims to strengthen the Brazilian developer community with Base Ethereum L2
Plein believes that on-chain is the next chapter in a fairer, more accessible, more efficient and more transparent internet. Incubated within Coinbase, Base launched its mainnet in August 2023 to serve as a trusted home for Coinbase's on-chain products and an open ecosystem on which anyone can build.
“Our goal is to build a secure, affordable, and easy-to-deploy Ethereum L2 that can bring the next millions of developers and billions of users on-chain,” says Plein.
He points out that interest in decentralized application development is growing and Coinbase aims to build a vibrant community of Base users and developers in Brazil. “Therefore, one of our goals for 2024 is to further strengthen our relationship with Brazilian developers through exclusive events and initiatives so that they can leverage the full potential of the Base ecosystem,” he explains.
Strengthening institutional partnerships to improve cryptocurrency services in Brazil
Coinbase has formed institutional partnerships with Brazilian banks and fintechs, including a partnership with EBANX that integrates Pix for easy account top-ups using BRL.
“Coinbase is always focused on improving its platform and providing the best services and products for Brazilians, and continues to be alert to possible new investments in projects and partnerships with companies that can contribute to the development of the global cryptocurrency ecosystem. I'm leaning forward. We are committed to working with innovators to expand access to the cryptocurrency economy and web3 with the aim of bringing these benefits to more Brazilians,” Plein concluded.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
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