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Brazil imported BRL 23.3 billion in cryptocurrencies this year show data from the Central Bank

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Brazilians have already bought nearly R$ 23.3 billion in cryptocurrencies this year. The data was released by the Central Bank in a report on Friday (14) and the numbers were presented in dollars, totaling US$ 4.270 billion since January.

In August, the purchase value was US$ 496 million. The purchase of cryptoactives reached its peak in May, when Brazilians bought US$ 756 million.

Since then these numbers have been falling (US$695 million in June and US$583 million in July), but they are still much higher than what was seen at the beginning of the year: in February cryptoactive purchases were US$386 million and in March, $357 million.

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See below the numbers (underlined in yellow) of the purchase of cryptoactives by Brazilians since January (values ​​in dollars):

one-hand flow

The BC’s director of monetary policy, Bruno Serra, said on Friday (15) that Brazilian investments in cryptoactives abroad are potentially three times greater than in American shares.

The executive points out that there is a potential to reach R$ 50 billion in cryptoactives purchased by Brazilians.

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But Serra, who spoke in a videoconference organized by the company Upon Global, made a reservation: “It’s a one-way flow. Due to the cost of energy, Brazil does not produce cryptoactives, it is just an importer”.

Cryptoactives enter BC balance sheets

In August was the first time that the Central Bank of Brazil on import and export of cryptoactives in external sector statistics.

On the occasion, BC president Roberto Campos Neto said at the time that “a great increase in demand for cryptocurrencies was taking place,” when he participated in a meeting of the FGV’s National Financial System (Neasf) study group.

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Campos Neto said that at that time there were around US$ 40 billion (R$ 209 billion) in cryptocurrencies in the hands of Brazilian citizens.

peak in may

BC import data confirm that May was the month with the largest purchase in Brazil, with R$ 4.127 billion in cryptocurrencies entering the country (values ​​adjusted to the current dollar exchange rate).

That month, the Brazilian market broke a record by trading R$ 826 million in bitcoin in a single day.

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BC’s view on cryptoactives

As of August this year, the transfer of ownership of cryptoactives between residents and non-residents began to be disclosed by the BC in the balance of payments assets account.

Following a methodological recommendation from the IMF, the Central Bank understands cryptocurrencies as goods (non-financial and produced assets), in such a way that they need to be registered in external sector statistics. Because there are no customs records for cryptocurrencies such as bitcoin, they are not included in commodity statistics.

Transactions with cryptoactives are estimated based on foreign exchange contracts — a legal instrument that records the negotiation between buyer and seller of foreign currency, following the requirements of the Central Bank.

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Brokerage gives China users a week to trade cryptocurrencies for the last time

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The Huobi Global cryptocurrency exchange, which since September has been preparing to close down its operations in China, set December 14 as the last deadline for deposits and trading of cryptocurrencies for Chinese users. After 12/15, only the withdrawal function will be available, the company said on Sunday (5th) according to the website China.org.

The expectation is that the health function will remain available for 1 to 2 years, according to the website, which highlighted the month of December as the landmark of the massive exit of companies in the sector, driven by the impositions of the Chinese government in disfavor both to operations and to the cryptocurrency mining in the country.

In September, the exchange, which has its origins in the Asian country, had already announced that it would gradually close existing accounts by December 31 and that it would no longer accept new registrations. The aim was “to comply with local regulatory laws”.

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Changes at Huobi

Since moving to Singapore after the Chinese government took similar steps in 2017, Huobi has tried to keep a portion of its base in the country due to the large number of Chinese customers. Last month, however, the company also added the Asian country to its restricted jurisdiction list, where it is expected to go down in March 2022.

In July this year, the exchange, which has several branches around the world, took the same measure to users in the United States, Canada, among other countries, who were also banned from trading on the platform.

Recently, too, Huobi estimated that it could lose 30% of all its revenue just by ending users in China. “There will be no Chinese users on the platform […], so our recipes [desses clientes] will reach zero”, said the co-founder of Huobi, Du Jun.

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Huobi in Brazil

In 2018, Huobi launched a branch in Brazil, but for an unknown reason, it ended operations months later. However, by allowing customers in the region to use the Real to purchase cryptocurrencies, a function created in August this year, it may be a sign that the exchange still has plans to return to operating in the Brazilian market.

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Nexo Partners With Fidelity to Expand Institutional Access to Cryptocurrencies

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Nexo has partnered with digital asset manager Fidelity to make cryptocurrencies more accessible to institutional investors.

Leading cryptocurrency lending and savings platform Nexo has partnered with Fidelity Digital Assets (FDA), the digital arm of financial services giant Fidelity Investments, to expand institutional access to cryptocurrencies.

Nexo Partners with Fidelity

Following the collaboration, both firms will develop a comprehensive product suite and compliant infrastructure for institutional investors seeking to gain exposure to cryptocurrencies, Nexo said in a press release shared with CryptoPotato.

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In addition, the duo will offer quality custodial and lending services as well as launch innovative products developed specifically for institutional clients.

Unrestricted Access to Crypto

Under the agreement, Fidelity’s institutional customers will have unrestricted access to Nexo’s products, including the company’s crypto prime brokerage, while expanding Nexo’s ability to increase its assets under management.

Nexo’s custodial layer will also be upgraded to military-grade security infrastructure, keeping investors safe at all times, the announcement added.

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Nexo has partnered with digital asset manager Fidelity to make cryptocurrencies more accessible to institutional investors.

Leading cryptocurrency lending and savings platform Nexo has partnered with Fidelity Digital Assets (FDA), the digital arm of financial services giant Fidelity Investments, to expand institutional access to cryptocurrencies.

Nexo Partners with Fidelity

Following the collaboration, both firms will develop a comprehensive product suite and compliant infrastructure for institutional investors seeking to gain exposure to cryptocurrencies, Nexo said in a press release shared with CryptoPotato.

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In addition, the duo will offer quality custodial and lending services as well as launch innovative products developed specifically for institutional clients.

Unrestricted Access to Crypto

Under the agreement, Fidelity’s institutional customers will have unrestricted access to Nexo’s products, including the company’s crypto prime brokerage, while expanding Nexo’s ability to increase its assets under management.

Nexo’s custodial layer will also be upgraded to military-grade security infrastructure, keeping investors safe at all times, the announcement added.

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Commenting on the development, Kalin Metodiev, co-Founder and Managing Partner at Nexo, said the partnership will enable customers to use the credit and trading products while relying on FDA’s advanced custody and security infrastructure.

“Working with Fidelity Digital Assets is the latest milestone in our quest to offer a complete institutional platform and to onboard traditional finance companies into the digital asset ecosystem,” Metodiev added.

Christopher Tyrer, Head of Fidelity Digital Assets Europe, noted that the move creates an opportunity for the duo to deliver a robust and seamless solution for their customers, adding:

“We’re thrilled that our best-in-class operational controls and security expertise will be extended to the assets of Nexo’s customers, while the ability for Fidelity Digital Asset’s clients to access Nexo’s lending solutions will help us deliver a richer experience to meet our clients’ evolving needs.”

The development comes less than a month after Nexo announced a $100 million buyback program for its native cryptocurrency dubbed NEXO.

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Surging Institutional Interest in Crypto

In recent times, there has been a growing interest in cryptocurrencies from institutional investors, who hope to also participate in the opportunities associated with the asset class.

While several institutional clients have gained exposure to cryptocurrencies via direct and indirect investments, the interest in crypto assets from these investor classes has continued to surge.

According to a report in July, as part of its efforts to the growing institutional interest in cryptocurrencies, FDA said it will hire 100 employees, which would see its staff strength surge by up to 70%.

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Top 5 cryptos to include in your Christmas wish list

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  • Cryptocurrencies offer a unique opportunity to diversify one’s portfolio.
  • There are five altcoins that appear to have great potential.
  • Speed, scalability, and low transaction costs make these digital assets stand out. 

Cryptocurrencies are here to make transactions easier and faster. But before you can jump right in and add any old cryptocurrency to your Christmas list, you need to understand what token you are investing in and the benefits they offer. There are five cryptocurrencies that appear to have a great future ahead.

Solana

Solana is an open-source project implementing a new, high-performance, permissionless blockchain that is all about speed.  

It has 400 millisecond block times and as hardware gets faster, so does the network. Solana’s scalability ensures transactions remain less than $0.01 for both developers and users. 

Price-wise, Solana is currently selling at an average price of $200. 

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Not only is Solana ultra-fast and low cost, but it is also censorship-resistant. This means that the network will remain open for applications to run freely, and transactions will never be stopped.

Solana’s crypto-economic system is designed to promote a healthy, long-term self-sustaining economy with participant incentives aligned to the security and decentralization of the network. The main participants in this economy are validation clients.

StakeMoon

Since launching in early November, StakeMoon has raised $1,200,000 and continues to climb. 

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The new and innovative digital cryptocurrency project is still in its infancy but looks like a promising investment. Striving to reward long-term holders, StakeMoon’s token has a taxation policy that penalizes market speculators, resulting in regular dividend payments for existing token holders and flexible staking rewards. 

Transactions attract a taxation rate of 15%, where 10% is distributed to existing token holders, while the remaining 5% is allocated to the StakeMoon liquidity pool. Tokens are not locked into a minimum redemption period. Instead, stakers can withdraw their StakeMoon at any given time.

StakeMoon has launched on PancakeSwap, a decentralized exchange (DEX), on November 20, creating a marketplace for users to buy, sell, and trade hundreds of decentralized finance (DeFi) tokens without third-party involvement.

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StakeMoon has been heating up fast and keeping tight on its roadmap, with plans to list on BitMart in early 2022 with CoinGecko and CoinMarketCap listings coming soon.

Avalanche 

Avalanche is an open and programmable smart contracts platform for decentralized applications.

It claims to be the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. The native token, AVAX, secures the network, pays for fees, and provides the basic unit of account between the multiple blockchains deployed on the larger network.

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The resources spent by a validator for staking are proportional to that validator’s total stake. Avalanche has unique benefits including the rewards accumulated by a validator for validating are proportional to that validator’s total stake. 

Since Avalanche is leaderless, there are no “rich-get-richer” compounding effects. Validators that lock their stake for longer are rewarded more and are also incentivized to stay online and operate correctly as their rewards are based on proof-of-uptime and proof-of-correctness. 

AVAX is a capped-supply token, with a maximum cap of 720 million tokens. The rate at which the maximum cap is reached is subject to governance. Fees are not paid to any specific validator. Instead, they are burned, thus increasing the scarcity of AVAX.

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DeFi Coin

DeFi Coin is the digital token that represents the DeFiCoins.io website and DeFi Swap exchange. 

By allowing buyers and sellers to exchange value directly with other market participants – the DeFi Swap exchange ensures that there is no requirement to go through a centralized third party. 

The DeFi Coin umbrella actively promotes three functions: static rewards, automatic liquidity pools, and manual burning strategy.

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Users are encouraged to hold their DeFi Coin tokens on a long-term basis because transactions are taxed at a rate of 10% discouraging day trading. Perhaps most importantly, 5% of this figure is distributed to existing DeFi Coin token holders, which is not much different from conventional dividend payments. The other 5% is utilized to provide liquidity to decentralized exchange services.

A major benefit of holding DeFi Coin tokens is that users can earn dividends via a static reward system.

Radix 

Radix promises to put the fun back into DeFi with a focus on the community, security and scalability. 

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It focuses on the community, recognizing each individual developer and allows them to contribute to the online DeFi component library in exchange for direct royalty fees when projects use their components to build the next billion-dollar DeFi application.   

Radix is the only decentralized network where developers will be able to build quickly without the constant threat of exploits and hacks, where every improvement will get rewarded, and where scale will never be a bottleneck.

The network’s unique benefits include 100% of all transaction fees being burned, 53.8% of the token supply being locked on average across POS networks, 300 million XRD tokens per year will go to stakers for securing the network, and eXRD/SRD bridge will allow users to move quickly between Ethereum and Radix.

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