The economic upheavals that are currently taking place in Brazil is evident by the devaluation of its currency, the brazilian real. According to the latest news, the country’s central bank took drastic measures that désavantageront even more of its currency, to raise the Bitcoin.
The real is in a bad position
The brazilian central Bank has lowered its interest rate to 3%.
Theoretically, a low interest rate increases the monetary mass in circulation. Added to the devaluation, recent of the real, which already lost almost 30% of its value relative to the u.s. dollar, investors will decide probably to get rid of brazil’s currency.
With the review to the decrease in the rate of the central bank, the profits expected by investors choosing to grow their money in the real will therefore be significantly reduced.
The actors of the finance could then migrate to other markets such as crypto-currencies, seeking a risk-reward more attractive.
Delphi Digital has recently published a report entitled ” The State of Bitcoin “, the broad lines indicate that this migration potential would lead to a greater boost to Bitcoin (BTC).
“This is not to say that floods of capital from emerging markets will flow directly into the Bitcoin … but the extent of this potential movement may serve as a source of additional demand for BTC, especially if the tighter controls of capital are becoming more common.” he advanced.
The crypto-currencies on the button
As a reminder, the crypto-currency, and Brazil still have up here a relationship is mixed. Because of a hostile environment for crypto-currencies, four companies trading in Bitcoin have had to put the key under the door in Brazil since last year.
The president of the Federation of brazilian bank has even issued statements to the effect that the crypto-currencies are not really currencies.
Anyway, this development shows easily that the market for Bitcoin is becoming more flexible, more hospitality to investors. But the challenges ahead of Brazil in terms of regulations are still a long-term task.
What do you think of this huge springboard for crypto-currencies ? Let us know your opinion in the comment section below.
(Be the FIRST to vote)