According to Central Bank of Brazil analysts, Brazilians have purchased more than $4B worth of cryptocurrencies so far in 2021 alone. It is expected that the number could reach as high as $8B in 2022. The purchases have not been the result of significant spiking activity, either. Each month since January, purchases have reached more than $350MM, though they reached more than $750MM in the month of May.

“Bruno Serra, Director of Monetary Policy of the Central Bank, noted that the interest in cryptocurrencies doesn’t seem as though it will fade anytime soon. That’s not an opinion unique to Brazil. Southeast Asia continues to see significant digitalization. Investors across the globe are using cryptocurrencies as a value store and a hedge against inflation. Others see cryptocurrencies as a close relation to the technologies behind central bank digital currencies,” explained Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

The numbers are recorded as import/export statistics, meaning that cryptocurrencies are registered into the computation as an import or export, depending on the trade. That also means that the record is only of international sales, meaning that the real number is likely significantly higher.

“While the cost of energy makes Brazil a net importer in terms of cryptocurrencies, that has not discouraged involvement in the industry. People see what’s happening, and, even if they don’t technically understand all of the components, I believe that they understand that the technology behind Bitcoin and other cryptocurrencies is here to stay. They know when they see something transformative, and this is, most definitely, transformative,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“People are watching what’s happening in the world. They see that the pandemic has spiked inflation. They’re watching supply chains falter. They’re watching China move quickly to develop and release the e-yuan. They know that being an early adopter is important. That’s why there is so much interest in cryptocurrencies right now, and I think that interest is going to sustain itself as we begin to see central banks publicly adopt similar technology when they launch their digital currencies," said Gardner.