According to data from Mercado Bitcoin, Mercado Bitcoin processed a total of USD 740,480 in bitcoin trades, accounting for 28.48% of the market share. This surge in Bitcoin volumes has taken place in Brazil despite the negative image of the cryptocurrency there.
The increase in trading activity and Bitcoin adoption may have stemmed from the fact that majority of the population remains unbanked and that the official currency in Brazil, the real, has been continuously depreciating. Fiscal measures imposed by the government are limiting capital options and dampening the economic outlook, as tax hikes and entitlement cuts are weighing on spending activity.
In addition, financial regulations in Brazil make it difficult to move the currency out of the country. Meanwhile, Bitcoin offers more options and served as a more cost-efficient way of moving funds around.
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