48% of Brazilians would accept Bitcoin as a currency

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.

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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.