Brazil Leads in Crypto Adoption

The Latin American country earlier this year enforced a law that ensures the Brazilian Central Bank has regulatory oversight over the crypto economy.

by Daniel Lynch, Simran JagdevDecember 12, 2023
MMI Brazil

__O coracao bate verde e amarelo - e web3 __

While web3 means many different things to many different people, in Latin America it is quite often literally a means - to better savings tools, cheaper remittances, social inclusion - rather than an end in itself.

The massive adoption of web3 has made Brazil a leader in digital assets. According to a survey on web3 perception conducted by Consensys and YouGov, 41% of Brazilians either own digital assets today or have owned those in the past. In fact, more Brazilians have purchased digital assets than traditional equities, according to data from the Brazilian Central Bank. This fact, uniquely - and importantly - displays a parity of sophistication and knowledge across genders.

Brasilians, through self-custodial wallets, sophisticated exchanges, and even more traditional fintech and financial institutions, have been builders in every sense of web3 ethic - trading crypto assets, using stablecoins for savings and payments, contributing to vibrant NFT projects, participating in decentralized finance, pioneering decentralized science, creating projects for social inclusion - web3 in Brasil is not the future, it is the present.

New Rules, New World

Brazil is also a leader in cryptocurrency regulations. While many regulators, including those in the US, are skeptical towards crypto, Brazil’s people are actively embracing crypto use and enacting laws to enable a more responsible crypto ecosystem.

In December 2023, Brazil passed the Legal Framework for Virtual Assets in Brasil (“Cryptoassets Act”). The law established the Brazilian central bank as the primary supervisor of the crypto economy in the country and is aimed at preventing crypto scams amidst the widespread adoption of web3. The Act also stipulates that some tokens projects that are deemed securities be regulated by the Comissão de Valores Mobiliários, the Brazilian securities regulator.

The move aligns with the sentiments of Brazilians on regulation that were revealed in the Web3 Perception Survey. According to the survey, 48% Brazilians believed that cryptocurrencies should be heavily regulated, while 32% believed that regulators should create regulations to encourage responsible participation in the ecosystem.

Further, the Cryptoassets Act went into effect in June 2023. One of the first actions the Brazilian Central Bank took was to grant Mercado Bitcoin, a Brazilian crypto exchange, the status of a payment institution. This now allows Mercado to participate directly in the payments system. More recently Transfero has been granted payment institution status as well.

The regulatory clarity has allowed consistent, responsible innovation from both traditional financial institutions like BTG (with their BTGDOL stablecoin and Mynt exchange), as well as from newer, more crypto native institutions like Transfero, FoxBit and Bitso. This, in turn, has made Brasil one of the most sophisticated countries in the world for institutional web3 adoption.

At MetaMask Institutional, we make web3 access easy for all institutions entering the space.

MetaMask Institutional: Unrivaled Access to DeFi

To make a simple financial transaction – making a payment, buying a stock, importing a good – requires interactions with various financial players in traditional finance. Take the SWIFT banking ecosystem for example. It is essentially a communications system used by a large network of TradFi institutions to send and receive information about financial transactions. A single transaction through SWIFT can include correspondent banks, corporates, custodians, investment managers, importers, exporters, exchanges and central banks that require a series of standards and a single messaging window.

In the web3 ecosystem’s quest to transform the financial ecosystem, it also requires this same level of simple standard integration and a single window for institutions to be able to achieve seamless connectivity between different Layer 1 and Layer 2 networks, DeFi protocols, custodians, risk providers, staking providers, etc.

To this end MetaMask Institutional presents a standard single window unifying these experiences and providers:

  • We maintain parity with MetaMask - the choice wallet of more than 100M users with unparalleled access to web3
  • We provide integration to more than a dozen best-in class-custodians and custody tech providers.

Custodian Map correct

  • We provide best-in-class Portfolio Management and Reporting to accurately track yield farming, staking, liquidity provision, NFTs and unclaimed rewards.

Staking marketplace screenshot

  • Our Staking Marketplace provides simple one-click connectivity and a unified set of terms and conditions to best-in-class staking providers.
  • Via native integrations and Snaps, MetaMask institutional users have access to transaction simulation and risk scoring from best-in-class providers like BlockAid, WalletGuard, Tenderly and Blockfence
  • We provide multiple interfaces for interacting with these portfolios - the MetaMask extension, the Portfolio Dashboard as well as programmatic access.
  • Portuguese-speaking support and product staff to support you in each step of your web3 builder journey.

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