Cryptocurrency imports in Brazil have reached record-breaking numbers, impacting the country’s trade balance. Over the past year, cryptocurrency purchases amounted to $14.84 billion, surpassing the $12.3 billion recorded the previous year. In Q1 2024 alone, crypto imports reached $4.69 billion, a significant 118% increase compared to the figures from Q1 2023.
These numbers, considered imports by the Brazilian central bank, have started to play a significant role in the country’s trade balance. The central bank data reveals that crypto purchases in March alone amounted to $1.751 billion, bringing the Q1 total to $4.69 billion. This represents a substantial growth of 118% compared to the $2.15 billion reported in Q1 2023, potentially driven by the appreciation of Bitcoin and other cryptocurrencies.
The surge in cryptocurrency purchases has drawn attention from economists as it contributes to Brazil’s trade deficit. Sergio Goldenstein, the chief strategist at Warren Investimentos, emphasizes the relevance of these numbers, stating that cryptocurrency imports are no longer negligible but are now impacting the trade balance.
Despite this growth, the trend is likely to continue, as the conditions for cryptocurrency mining in Brazil are not favorable. The current average energy price of $0.14 Kwh poses a significant challenge for mining companies to establish operations in the country.
Livio Ribeiro, a partner at BRCG Consultoria, predicts a negative balance of $18 billion for the cryptocurrency trade by the end of this year. However, Citi recently reported that Brazil is leading digital money initiatives in Latin America.