José Ribeiro, CEO of cryptocurrency exchange Coinext and a Bitcoin maximalist, said that cryptocurrency may be “obsolete” but it is still attracting new users to Web3 every day, especially in emerging markets such as Brazil.
At the Web Summit in Lisbon, Ribeiro discussed his views on Bitcoin, Brazil’s vibrant crypto economy, and how regulatory clarity can foster competition in the country’s payments industry with Cointelegraph’s Joe Hall.
Ribeiro said that Bitcoin trading volume in Brazil will reach record levels in 2023 as more global cryptocurrency exchanges such as Binance, OKX and Coinbase launch operations in the country.
“Competitiveness has increased significantly, and that’s part of the business from a cryptocurrency adoption perspective. This country has a history of inflation and I think interest rates will definitely come down next year and we’ll have another cycle,” Ribeiro said .
A recent survey by the Brazilian Central Bank showed that Brazil’s benchmark interest rate is currently 12.25%, down from 12.75%, and may reach 9.25% by December 2024.
In addition to the prospect of falling interest rates in Brazil, global drivers such as the approval of a spot Bitcoin ETF in the United States and the Bitcoin halving are also expected to impact prices. However, Ribeiro said the cryptocurrency community should focus on fundamentals rather than price action.
“People only heard about Bitcoin when prices hit all-time highs, right? (…) But people don’t talk much about the fundamentals, and the fundamentals haven’t changed since its inception.”
Furthermore, Ribeiro highlighted the importance of the regulatory framework in promoting innovation in the country. “We are very advanced in complying with the forms required by the tax authorities,” Ribeiro said, referring to the monthly reports submitted to local tax authorities on transactions conducted on the exchange.
Coinext CEO says Brazilian regulators are willing to engage in discussions on cryptocurrencies and payments.
“They (Brazilian regulators) understand cryptocurrencies, they understand the risks of our business, which is good. I wouldn’t say regulation is good, but regulation is necessary to some extent because we definitely want some rules in The market is competitive because we are competing with companies outside of Brazil, and those companies don’t pay taxes, so we don’t compete in the same way.”
Over the past few years, Brazil’s central bank has implemented the PIX payment system, allowing instant payments between individuals and businesses. For PIX transactions, the user only needs the key identifier of the PIX recipient, such as an ID number, mobile phone number or even an email address.
The country is also developing its central bank digital currency (CBDC), called DREX, which is expected to be launched next year. Ribeiro noted: “This will take Brazil to another level in terms of blockchain adoption and the use of blockchain as an infrastructure for the entire financial markets industry.”
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