The bitcoin.com website announces that stock brokers and investment companies are entering the bitcoin world. The virtual currency without boss and that is negotiated between two dealers directly, without intermediaries, attracts the attention of Brazilians.
XP investments and Criptomoedas Facil, are two pioneers in this market, somewhat mysterious for the uninitiated.
Brazil’s XP Investimentos signals its willingness to meet customer demand, filing patent on the brand XP Bitcoin. The move could legitimize bitcoin in the eyes of average Brazilian investors, despite the firm’s previous public protestations and warnings, bringing a Latin American powerhouse to the cryptocurrency marketplace.
Brazil has careened from crisis to crisis in recent years. Corruption plagues its politics, with impeachments and recriminations standard and ongoing.
Since 2015 brazilian economy has been in utter free-fall, unemployment rising, catastrophic budget deficits, credit rating disasters and outlook, an inflation rate well-above seven percent. Its GDP fell consecutively, 2015 and 2016, the first time that’s happened in 80 years.
It’s no wonder Brazilians are looking for financial alternatives like bitcoin.
Allex Ferreira of Brazil’s Criptomoedas Facil, posted evidence XP has already petitioned to patent a brand, XP Bitcoin, presumably a future brokerage subsidiarity.
Brazil’s purchasing power parity outstrips all other countries in the region at 3.2 million Geary-Khamis dollars, an international standard. And when Brazil is combined with Mexico and Argentina, the three countries account for a clear super-majority of economic activity in Latin America.
A substantial move into the bitcoin space from Brazil would have far-reaching impacts.
Criptomoedas Facil reported and editorialized on what XP Bitcoin would mean to a domestic investor class already populated by skittishness in its traditional financial sector.