Brazil’s crypto regulatory environment is driving competitiveness — Coinext CEO
Bitcoin maximalist José Ribeiro, who serves as the CEO of the cryptocurrency exchange Coinext, shared insights with Cointelegraph during the Web Summit regarding the cryptocurrency environment in Brazil.
Bitcoin maximalist José Ribeiro, CEO of Coinext, a crypto exchange, discussed the cryptocurrency landscape in Brazil at the Web Summit in Lisbon. Despite the perception of cryptocurrency being "out of fashion," Ribeiro noted that it continues to attract new users to Web3, especially in emerging markets like Brazil. During the discussion, he highlighted the vibrant crypto economy in Brazil and how regulatory clarity has led to increased competition in the country's payments sector.
Ribeiro predicted that Bitcoin transaction volumes in Brazil would reach record levels in 2023, fueled by the entry of global crypto exchanges like Binance, OKX, and Coinbase into the Brazilian market. He emphasized the competitiveness in the industry, driven by Brazil's history of inflation and anticipated lower interest rates in the coming year. Ribeiro also pointed out that the benchmark interest rate in Brazil is currently 12.25%, with expectations of reaching 9.25% by December 2024.
Regarding the global factors influencing crypto prices, Ribeiro mentioned the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States and the Bitcoin halving. He urged the crypto community to focus on fundamentals rather than short-term price movements, emphasizing that the core principles of Bitcoin remain unchanged since its creation.
Discussing the regulatory environment in Brazil, Ribeiro highlighted the advanced measures taken to comply with tax authorities, including monthly reports filed on transactions carried out on exchanges. While acknowledging the need for regulation, he also noted that it is essential for staying competitive in the global market, especially when competing with companies operating outside Brazil that may not adhere to tax regulations. Brazilian regulators are open to discussions about cryptocurrency and payments, understanding the risks and complexities of the industry.
In recent years, Brazil has implemented the Pix payment system, allowing instant payments between individuals and businesses, and is actively working on its central bank digital currency (CBDC), known as DREX, expected to launch next year. Ribeiro believes that the introduction of DREX will elevate Brazil to another level in terms of blockchain adoption, serving as infrastructure for the financial market industry.