El Salvador made history by becoming the first country to adopt Bitcoin as legal tender last week.
Valor Investe, a Brazil-based financial education website, reported of a recent survey whose results suggest that 48% of Brazilians would welcome Bitcoin as the official currency in the country. The study involved 2,700 people interviewed in the following South American countries: Argentina, Costa Rica, Chile, Colombia, El Salvador, Venezuela and Brazil.
Brazilians have also been the biggest supporters of El Salvador’s decision to adopt Bitcoin as legal tender. Indeed, 56% of Brazilians surveyed felt that adopting cryptocurrency was a good decision. The study commissioned by Sherlock Communications found that just over a fifth of respondents categorically rejected the idea of cryptocurrency.
“Brazilians have been the biggest advocates of cryptocurrency recognition in the region, with 56% supporting El Salvador’s approach and 48% saying they want Brazil to adopt it as well… Moreover, 30 % neither agree nor disagree and 21% are against the idea (12% disagree and 9% strongly disagree). “
The 12% of respondents who are not ready to invest in Bitcoin report a significant drop compared to the 33% who said the same thing in 2020. The main reasons given for not joining cryptocurrencies are security concerns ( 42%), the volatile nature of assets (37%) and the lack of financial means to invest (33%).
When asked about their motivation to invest in digital assets, 55% responded that they allowed them to diversify their investments, and 39% of respondents saw it as protection against inflation and financial volatility. A proportion (39%) of those polled also said they were in this investment circle to keep up with technology trends.
The study found that although Brazilians have embraced active crypto in general, Bitcoin remains the most dominant crypto coin in the country. The vast majority (92%) of survey participants said they knew Bitcoin, 31% knew Ethereum and 30% Litecoin, which are the three most popular cryptocurrencies in the country.
The results showed that Latin Americans were concerned about economic crises in their countries, with 38% of respondents saying it made them much more interested in investing in cryptocurrencies, while 37% said the crisis only slightly increased their interest. A fraction of 15% said the economic state made no difference to their interest in cryptos.
Brazil currently has over 1.4 million registered users of cryptocurrency platforms, and these users are served by 21 ATMs. Additionally, Brazil’s approval of exchange-traded funds (ETFs) earlier in the year was a big part of establishing a strong crypto presence, as ETFs allowed the most reserved investors to get into crypto.
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