Brazil’s XP investimentos signal can legitimize Bitcoin in the eyes of average Brazilian investors. It is willing to meet customer demand, filling patent on the brand XP Bitcoin.
Brazil is Big
Folha de S.Paulo (Folha) Latin America’s highest circulating newspaper, profiled Bitcoin for its readers. Universo Online, Brazil’s most popular internet portal in which Folha is owned by Groupo Folha.
Joao Paulo Oliveira, chief analyst of Cryptocurrencies at XP Investimentos (XP), Brazil’s biggest brokerage firm.
“It’s no wonder Brazilians are looking for financial alternatives like bitcoin”.
The influence on legal oversight and regulations, he quotes as being quite the Cassandra regarding Bitcoin. However, Brazil’s purchasing power parity outstrips all other countries in the region at 3.2 million an international standard: Geary-Khamis. Accordingly, a move into the Bitcoin space from Brazil would have far-reaching impacts.
Agnostic on XP Bitcoin
Reportedly, Criptomoedas Facil and editorialized on what XP Bitcoin would mean to domestic investors. However, it has already populated by skittishness in its traditional financial sector.
Since 2015, its economy has been in free-fall, inflation, unemployment rising, credit rating disasters, budget deficits. In 2015 and 2016, its GDP fell for the first time that’s happened in 80 years. Since no wonder, Brazilians are looking for financial alternatives like Bitcoin.
Mr.Ferreira is philosophical about XP Bitcoin. He noted,
“I believe it will not make the slightest difference in my business. A tightening of regulations and increased compliance and bureaucracy will actually increase market demand even more [for] P2P brokers and exchanges”.
Additionally, he goes on to lament liquidity issues and how XP will swing prices. He adds, normally, the advent of such an exchange in the Bitcoin market is evidence that the industry is surfacing and attracts of investors and heavyweight speculators.