Brazil’s largest brokerage Grupo XP has announced that it plans to enter the cryptocurrency ecosystem with an exchange in the coming months.
Brazil’s largest financial group will launch the exchange XDEX with plans to offer both Bitcoin and Ethereum exchange services. According to the company’s CEO Guilherme Benchimol, the company is being pushed towards cryptocurrency due to Bitcoin’s huge popularity in the country.
In terms of volume traded, Brazil is currently the world’s largest Bitcoin market with 3 million Brazilians being exposed to Bitcoin, compared to only 600,000 that invest in the stock market. The company intends to open the new exchange with forty employees.
The CEO appears reluctant to make the move but clarifies that he is simply following financial market trends, stating: “this is a theme I’d rather didn’t exist, but it does…we felt obligated to start advancing in this market.”
Next month’s presidential elections could be critical for the advancement of cryptocurrency in terms of who is elected. New Party candidate João Amoêdo has recently expressed pro-Bitcoin views and aims for the privatization of public enterprises like Petrobras, Central Bank of Brazil and Banco do Brasil. Although the party supports welfare programs like Bolsa Família, it aims to privatize the public health system and public education. The state would give vouchers for health and education to people who couldn’t afford it, according to Wikipedia.
Another Brazilian presidential candidate, João Goulart Filho from the Partido Pátria Livre (PPL) party, recently gave an interview to local blockchain media outlet Criptomoedas Fácil, where he discussed the necessity of regulations for the country’s growing cryptocurrency industry. Filho said that he and his party are, ‘following with caution’ the recent movement in the cryptocurrency market, hoping to be able to provide much-needed and well-informed regulation for Brazil if elected in October.
According to Reuters, Brazil’s banks are under investigation for closing brokerages trading in Bitcoin, after a request lodged by the Brazilian Blockchain and Cryptocurrency Association (ABCB). Grupo XP will clearly be watching the outcome of the investigation with vested interest.
Grupo XP has huge targets for the future, setting itself a goal of $245 billion under custody over the next three years with a bank scheduled for opening later this year.
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