Cryptocurrency Still Attracts New Users to Web3, Especially in Emerging Markets, Says Coinext CEO

Bitcoin Volume Transactions in Brazil Expected to Reach Record Levels by 2023

Cryptocurrency may be considered "out of fashion" by some, but it continues to attract new users to Web3 on a daily basis, particularly in emerging markets like Brazil, according to José Ribeiro, the CEO of crypto exchange Coinext. Speaking at the Web Summit in Lisbon, Ribeiro discussed Bitcoin's prospects, Brazil's vibrant crypto economy, and how regulatory clarity has fueled competition in the country's payments sector.

Increased Competitiveness and Future Outlook

Ribeiro predicts that Bitcoin volume transactions in Brazil will reach a record level by 2023, as more global crypto exchanges, such as Binance, OKX, and Coinbase, establish operations in the country. He believes that increased competitiveness is driving crypto adoption in Brazil, citing the country's history with inflation and the anticipated decrease in interest rates next year. Ribeiro states, "The competitiveness has increased considerably, which is part of the business from a crypto adoption perspective. The country has a history with inflation, and I see that interest rates are going to be down next year for sure, and we're going to have another cycle."

Focusing on Fundamentals and Regulatory Frameworks

Ribeiro urges the crypto community to focus on fundamentals rather than price movements. He emphasizes that while people often hear about Bitcoin when the price is at an all-time high, the fundamentals of the cryptocurrency have remained unchanged since its creation.

Ribeiro also highlights the importance of regulatory frameworks in promoting innovation in Brazil. He notes that Brazilian regulators have a good understanding of crypto and the risks associated with the industry. Ribeiro believes that regulation is necessary to ensure fair competition in the market, especially against companies outside Brazil that do not pay taxes. He states, "Regulation is needed somehow because we definitely want some rules to be competitive in the market because we are competing with companies outside Brazil, which are not paying taxes, so we are not competing in the same manner."

Advancements in Payments and Central Bank Digital Currency (CBDC)

In recent years, the Brazilian central bank has implemented the PIX payment system, enabling instant payments between individuals and businesses. Users only need the key identifier of the recipient, such as an ID number, cell phone number, or email address, to make PIX transactions.

Furthermore, Brazil is working on its own central bank digital currency (CBDC) called DREX, which is expected to be available next year. Ribeiro believes that the introduction of DREX will elevate Brazil's blockchain adoption and position the country as a leader in using blockchain as infrastructure for the entire financial market industry.