Although stakeholders’ feelings towards cryptocurrencies have undoubtedly deteriorated as a result of the collapse of FTX, their acceptance as a form of global trade has not changed.
Brazilian retailers and organization investors’ views on cryptocurrencies may have changed as a result of the collapse of the FTX cryptocurrency empire. Ordinary people who continue to use cryptocurrency for international transactions won’t be impacted by this, though.
T. Cesar, Chief executive officer of Transfero Group, a company that facilitates fiat transactions, commented on the recent decline in FTX by stating that, similar to many other nations around the world, the decline in exchanges has resulted in centered cryptocurrency traders and cryptocurrencies.
Effect of FTX collapse
The Brazilian cryptocurrency system and FTX are closely entwined with Transfero Group. This is because it published the Brazilian stable coin BRZ, which is registered on the yet bankrupt trading platform, and served as a provider of entry and exit for the exchange’s fiat currency.
Due to the fact that FTX is among the top 3 exchanges in levels of exchange amounts, Caesar told Coin telegraph that the exchange’s demise provided the market with a great source of liquidity.
A massive leak of finances from Brazilian exchanges has been reported as a result of the uncertainty surrounding centralized cryptocurrency exchanges, and many are now considering self-rule. Many people even try to sell off their cryptocurrency holdings, but the authorities keep their money in bank accounts.
Comments from the state
According to Cesar, it will be challenging for novice traders and investors to sell cryptocurrency holdings because of the FTX narrative. He observes that the demise of FTX won’t have much of an impact on those who use cryptocurrencies for international payments and money internationalization.
Players looking to convert their home currency into widely liquid dollar-denominated assets account for the majority of Brazil’s cryptocurrency volume.
Cryptography merely serves as a rail for that in that sense. So, the market won’t decline, as considered by the state. The two main factors influencing the adoption of cryptocurrencies in Latin America, according to a Chainalysis report published in October, were remittances and the fight against inflation.