Because this country alone can send Bitcoin and Ethereum higher

Digital assets have traced a path that can no longer be ignored. They have advanced enough in the last decade that countries and cities are starting to realize that the adoption of the technology will position them better in the long run.

An all-in country on cryptocurrencies is Brazil. Its 215 million citizens now live in one of the most cryptocentric economies in the world.

Crypto has been integrated into different levels of the Brazilian economy. Its exchange has six exchange-traded funds (ETFs) linked to cryptocurrencies, including a traditional one. Bitcoin (BTC 1.93%) ETF is a newer ETF that tracks cryptocurrencies Ethereum (ET 5.10%), Swap (UNITED 5.20%)And Curve (CRV 6.43%) that support decentralized finance (DeFi) projects.

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Big cities like Rio de Janeiro show how local governments can use digital assets and blockchain technology. In late July, Rio’s finance secretary said the city was considering adding Bitcoin to its treasury portfolio, saying the city hopes to become “Brazil’s crypto ecosystem” and the “capital of Brazil. innovation and technology of the country.

Adherence to the highest levels of government and finance is also reflected in the ownership of the cryptocurrency by Brazilian citizens. It is estimated that around 16% of people between the ages of 16 and 64 own some form of cryptocurrency. This leads all of Latin America and beats the United States, which stands at around 12%.

The banks are coming

This 16% seems to continue to grow based on recent developments with the country’s banks. Last June, the largest digital bank in the country, Nu Holdings’ (NAKED 4.94%) Nubank, has launched its own cryptocurrency trading platform, allowing users to trade Bitcoin and Ethereum. In just under a month, the platform added over a million customers. Nubank also allocates 1% of its cash to Bitcoin to demonstrate its confidence in the cryptocurrency.

With its recent success, Nubank’s competitors are getting into the cryptocurrency game. Santander Central Hispano Bank (NOT 0.41%)Brazil’s fourth largest bank has announced it will pursue a strategy to offer cryptocurrency-related products to its 53 million customers.

In a press release, Santander CEO Mario Leão said the bank is not pursuing crypto products in reaction to its competitors, but because it recognizes that it is a market that is here to stay. More details on the bank’s crypto products could be released in the October quarterly earnings report.

The rise of the digital country

The path traced by municipal governments, financial institutions and citizens of Brazil could be a model for the rest of the world. Bitcoin in particular appears to be the nation’s favorite, but the adoption of all technologies related to cryptocurrencies and blockchain positions it as a leader in the digital economy.

Continued investment in this economy through job creation, more accessible trade, and more cryptocurrency-friendly government will ensure continued adoption of major digital currencies. If other countries and cities follow Brazil, expect Bitcoin to proliferate across all sectors of the economy, raising its price, a development that will benefit cryptocurrency investors.

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