El Salvador made history by becoming the first country to adopt Bitcoin as a legal currency last week.
Valor Investe, a financial education website based in Brazil, reported on a recent survey with results suggesting that 48% of Brazilians would welcome Bitcoin as an official currency in the country. The study included 2,700 respondents from the following South American countries: Argentina, Costa Rica, Chile, Colombia, El Salvador, Venezuela and Brazil.
Brazilians were also the biggest supporters of El Salvador’s decision to adopt Bitcoin as a legal tender. In fact, 56% of Brazilians surveyed felt that the adoption of the crypto-currency was a good decision. The study commissioned by Sherlock Communications found that just over a fifth of those surveyed rejected the idea of crypto-currency outright.
“Brazilians were the biggest supporters of crypto-currency recognition in the region, with 56% supporting El Salvador’s approach and 48% saying they want Brazil to adopt it as well… On the other hand, 30% neither agreed nor disagreed and 21% were against the idea (12% disagreed and 9% strongly disagreed).”
The 12% of respondents who are not willing to invest in Bitcoin report a significant drop from the 33% who said the same in 2020. The top reasons cited for not embracing crypto-currencies are security concerns (42%), the volatile nature of the assets (37%) and lack of money to invest (33%).
When asked about their motivation for investing in digital assets, 55% said it allowed them to diversify their investments, and 39% of respondents saw it as a protection against inflation and financial volatility. A proportion (39%) of respondents also said they were in this investment circle to keep up with technology trends.
The study found that while Brazilians have embraced crypto assets in general, Bitcoin remains the most dominant crypto corner in the country. The vast majority (92%) of survey participants said they were familiar with Bitcoin, 31% were familiar with Ethereum and 30% with Litecoin, the three most popular crypto-currencies in the country.
The results showed that Latin Americans were concerned about the economic crises in their countries, with 38% of respondents saying it made them much more interested in investing in crypto-currencies, 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 on crypto-currency platforms, and these users are served by 21 ATMs. In addition, Brazil’s approval of exchange-traded funds (ETFs) earlier this year has been a major contributor to the establishment of a strong crypto presence, as ETFs have allowed even the most reserved investors to get into crypto.