Cryptocurrency Import to Brazil

The import of cryptocurrencies into Brazil is setting records and beginning to impact the country's trade balance. Over the past 12 months, the value of cryptocurrency purchases has reached $14.84 billion, up from $12.3 billion in the previous year. Additionally, cryptocurrency imports reached $4.69 billion in the first quarter of 2024, increasing by 118% compared to data recorded in the first quarter of 2023.

Record Quarter of 2024

Cryptocurrency purchases, classified as imports in Brazil, have reached new records and are beginning to have a significant impact on the country's trade balance. Data provided by the central bank indicates that the value of cryptocurrency purchases in March amounted to $1.751 billion, raising the total for the first quarter of 2024 to $4.69 billion.

This represents a 118% increase compared to the $2.15 billion recorded in the first quarter of 2023, suggesting that cryptocurrency purchases have doubled during this period, perhaps influenced by the rise in the value of Bitcoin and other cryptocurrencies.

In the last 12 months up to March, the value of cryptocurrency purchases reached $14.84 billion, marking a significant increase compared to the $12.3 billion reported for the same period a year earlier. Due to this significant growth, cryptocurrency purchases are attracting the attention of economists due to their impact on Brazil's trade deficit in this area.

Sergio Goldenstein, chief strategist at Warren Investimentos, told Valor Economico about the significance of these numbers for the cryptocurrency trade balance. He stated:

"The cryptocurrency import number is not insignificant; on the contrary, it is a very significant number that is already affecting the balance."

However, this trend is unlikely to change as conditions for cryptocurrency production in the country through mining are unfavorable. Current energy prices average $0.14 per kWh, a relatively high fee that makes it difficult for cryptocurrency mining companies to settle in the country and operate there.

Livio Ribeiro, a partner at BRCG Consultoria, predicts a negative balance of $18 billion for the cryptocurrency trade balance this year. Citi recently reported that Brazil is leading digital currency initiatives in Latin America.