Daily Archives: September 3, 2021

End of August’s NFT Sales Tapped All-Time High at $1 Billion, Last Week’s NFT Sales Hit $821 Million

Data shows that non-fungible token (NFT) assets continue to break record sales week after week as statistics show over $1 billion in NFT sales took place during the last week of August. Meanwhile, this week’s data shows $821 million in NFT sales have been settled so far, dropping a hair since the week prior.

Weekly Stats Show NFT Sales Are Still on Fire

Non-fungible tokens (NFTs) have become extremely popular and a great number of NFTs are selling for hundreds of thousands or millions of dollars in crypto. Statistics from nonfungible.com’s market history indicates that on August 29, 2021, seven-day sales broke an all-time high (ATH) at $1 billion in overall sales across all markets and NFT collections. Data from September 1, 2021, indicates sales are down from the ATH at $821 million this week.

End of August's NFT Sales Tapped All-Time High at $1 Billion, Last Week's NFT Sales Hit $821 Million
Statistics via nonfungible.com’s weekly data on September 3, 2021.

Cryptopunks is the top collection selling during the last seven days according to dappradar.com weekly NFT sale statistics. The Cryptopunks project saw $246 million in volume, up 7.32% since the week prior.

End of August's NFT Sales Tapped All-Time High at $1 Billion, Last Week's NFT Sales Hit $821 Million
Statistics via dappradar.com’s weekly data on September 3, 2021.

The second-largest NFT collection in terms of volume is Mutant Ape Yacht Club (MAYC) which saw $210 million in trade volume. A collection of NFTs called “The Loot for Adventurers” captured the third-largest NFT volumes this week, commanding $150 million in seven days.

Opensea Marketplace Commands Top Volumes, The Loot for Adventurers’ NFTs Bring Top Sales

Coming in fourth place this week is Axie Infinity as the NFT gaming universe built on Ethereum saw $144 million in weekly volume. The fifth-largest volume belongs to the NFT collection called Art Blocks which saw $144 million in seven days as well.

End of August's NFT Sales Tapped All-Time High at $1 Billion, Last Week's NFT Sales Hit $821 Million
Statistics via dappradar.com’s 24-hour NFT sales data on September 3, 2021.

The top NFT marketplace according to dappradar.com in terms of 24-hour sales is Opensea. The Opensea marketplace saw $179.5 million in volume during the last 24 hours.Opensea is followed by Axie Infinity, Superrare, the Tezo’s NFT market called Hic et nunc, NBA Top Shot and Rarible.

End of August's NFT Sales Tapped All-Time High at $1 Billion, Last Week's NFT Sales Hit $821 Million
Statistics via dappradar.com’s 24-hour top NFT sales on September 3, 2021.

The marketplace Rarible is followed by markets such as Polygon’s Aavegotchi, the Wax blockchain’s Atomicmarket, and the Marketplace that leverages the Ethereum network, Foundation. During the last 24 hours, the top NFT sale belongs to The Loot for Adventurers’ NFT called Bag #748, which sold for 250 ether or $945K. The Bag #748 NFT is followed by Bored Ape Yacht Club #17, which sold for 200 ether or $755K.

What do you think about the massive volume and super expensive NFT sales during the last few weeks? Let us know what you think about this subject in the comments section below.

Mastermind of Zimbabwean Bitcoin Pyramid Scheme Vanishes With $6 Million

Reports from Zimbabwe suggest that an individual by the name of Martin Mhlanga, who is the mastermind behind the Cryptoshares bitcoin pyramid scheme, has disappeared along with over $6 million in investor funds. In addition to Mhlanga’s disappearance, the individuals thought to be managing Cryptoshares’ social media channels have similarly vanished.

Unrealistic Cryptoshares Promises

As one local report explains, Mhlanga had successfully used a series of unrealistic promises to lure many unsuspecting people into investing. For instance, the report explains that many of the victims had been lured into investing by claims that initial Cryptoshares investors were receiving a monthly membership payment of $2,000. Investors were also promised a payout that is double the amount of the initial investment.

Believing that they too would be in line to receive the same monthly payment, some of Mhlanga’s victims are thought to have sold their properties just so they could raise the required money. Others are thought to have borrowed the required initial investment from banks.

However, once September 1 — the day investors were supposed to receive their payout — rolled around, it dawned on many Cryptoshares investors that they had been scammed. In fact, as one Twitter user, Tendai Tomu points out, the early signs that the company was collapsing were seen towards the end of August when Cryptoshares was having problems paying investors.

While the report suggests that some Cryptoshares investors have reported this fraud to law enforcement, many in Zimbabwe’s crypto space insist such a move will not yield much. They point to other bitcoin pyramid schemes like Bitcoin Interchange, which similarly collapsed after fleecing many investors.

Stolen Funds Cannot Be Recovered

Meanwhile, on Twitter, some users like Tendai Tomu are adamant that victims of this latest crypto pyramid scheme will never recover their funds. Tomu said:

Sad indeed! I don’t think the funds will be returned because remember he was paying early investors with deposits from new ones so the equation will never balance. The best people can do is to learn from this.

Others like lawyer Prosper Mwedzi have suggested reporting the fraud to cryptocurrency exchanges. However, still others insist such scams will recur unless more is done to educate people about the basics of investing.

What are your thoughts on this story? Tell us what you think in the comments section below.

Hashrate Follows Price: Bitcoin Hashrate Jumps 92% in 2 Months, Difficulty Expected to Increase in 4 Days

Hashrate Follows Price: Bitcoin Hashrate Jumps 92% in 2 Months, Difficulty Expected to Increase in 4 Days

Bitcoin prices have improved a great deal in recent times and the network’s hashrate remains higher than it was 67 days ago when it tapped a low of 69 exahash on June 28. Today, statistics show Bitcoin’s hashrate has increased more than 92% since then and the network is due for another increased difficulty change in four days.

Bitcoin’s Hashrate Improves a Great Deal in 2 Months

Bitcoin has risen more than 7% in fiat value during the last seven days and has a market capitalization of over $950 billion on Friday. At press time, three month hashrate stats from coinwarz.com shows BTC’s hashpower has increased a great deal since the end of June.

At that time, bitcoin miners from China were facing a crackdown from the government and were forced to relocate to other countries. BTC’s mining difficulty, however, started dropping well before the low drop to 69 exahash per second (EH/s). At the end of May, the difficulty slid by 15.97% and two weeks later another 5.3% decrease took place.

Hashrate Follows Price: Bitcoin Hashrate Jumps 92% in 2 Months, Difficulty Expected to Increase in 4 Days
Bitcoin hashrate on Friday, September 3, 2021. 133 EH/s measured in a three-month time period.

After the hashrate shuddered to 69 EH/s, the Bitcoin network saw the largest epoch mining difficulty decrease in the protocol’s lifetime. On July 3, 2021, the mining difficulty decreased by a whopping 27.94 % and two weeks later it dipped again down 4.81% on July 17.

Hashrate Follows Price: Bitcoin Hashrate Jumps 92% in 2 Months, Difficulty Expected to Increase in 4 Days
In four days, the Bitcoin network’s mining difficulty is expected to increase by over 2% to a possible 17.98 trillion.

After this time, during the course of the rest of July and throughout August, BTC’s price and hashrate saw a great recovery. The July 17, downward difficulty change was followed by the first increase in four consecutive downward shifts as it rose by 6.03% on July 29.

Upcoming Difficulty Change May Make it 28% Harder to Find a Bitcoin Block, Increase Will Erase July’s Largest Downward Difficulty Shift

Since then, the hashrate has been steady and BTC has seen a total of two increases since the 6.03% rise, and the very last increase jumped by 13.24%. Prior to that significant rise and following the 6% spike, the mining difficulty jumped 7.31% as well.

Today, coinwarz.com’s hashrate data shows the BTC network is coasting along at 133 exahash per second. At this current rate, in four days’ time, BTC’s mining difficulty is expected to rise from 17.62 trillion to 17.98 trillion. This would be a 2.07% increase at the time of writing, but depending on the hashrate it could increase or decrease from this point.

Hashrate Follows Price: Bitcoin Hashrate Jumps 92% in 2 Months, Difficulty Expected to Increase in 4 Days
Bitcoin hashrate distribution on Friday, September 3, 2021.

Today’s top mining pool in terms of BTC hashrate is Antpool with 16.24% of the network or 20.52 EH/s of hashrate. Viabtc follows Antpool with 13.69% of the network’s hashrate or 17.3 EH/s. Then there’s Poolin (11.37%), Btc.com (9.98%), F2pool (9.98%), Foundry USA (9.51%), Binance Pool (9.05%), and unknown hashrate (7.89%).

If estimates are correct and there’s a 2.07% difficulty increase in four days, it means since July 31, it’ll possibly be 28.65% more difficult to find a bitcoin (BTC) block in September 2021.

What do you think about the steady hashrate and the increased difficulty change slated for four days from now? Let us know what you think about this subject in the comments section below.

From $250 Billion to $2.35 Trillion: A Look at the Top Ten Crypto Market Cap Shifts Over 2 Years

From $250 Billion to $2.35 Trillion: A Look at the Top Ten Crypto Crypto Market Cap Shifts Over 2 Years

While the crypto economy is worth more than $2.35 trillion, there’s a variety of new cryptocurrencies that have claimed top ten positions, in terms of market capitalization, in recent times. Two years ago, the top ten crypto assets by market cap looked a lot different than today, and things have also changed a great deal in the past 12 months.

The Top Ten Crypto Assets in August 2019

Since the crypto asset’s inception, bitcoin (BTC) has held the largest market valuation out of all the coins in existence and no other digital currency has ever taken the top position. We know the crypto economy is valued at more than $2.3 trillion, and out of the 10,000+ cryptocurrencies, dominance levels are changing. Top ten shifts are happening, and the top ten crypto-asset positions in terms of valuation have changed a great deal last year and the year before.

At the end of August 2019, bitcoin (BTC) held the top position but only had a market valuation of around $181 billion. Today, BTC has an overall market valuation of $929 billion or 413% more than it was in August 2019. That same summer, ethereum (ETH) was the second-largest crypto asset by market cap with just over $20 billion. Today, ETH has an overall valuation of around $443 billion which is a whopping 2,115% increase in two years.

Cryptocurrency market capitalization in August 2019.

In August 2019, XRP held the third-largest crypto valuation with an $11 billion market cap. The market cap has increased by 427% but XRP now holds the sixth-largest position in terms of valuation among the top ten. Bitcoin cash (BCH) was the fourth largest crypto cap in the late summer of 2019 with an overall valuation of $5 billion. Today it is $12.4 billion which is an increase of 148%, but BCH is now in the 15th position in terms of market valuation. Litecoin (LTC) held the fifth biggest market with $4 billion two years ago, but today, LTC is in the 16th position.

Cryptocurrency market capitalization on September 3, 2021. These prices were recorded at 8:30 a.m. (EST) on Friday morning.

Binance coin (BNB) managed to move up from the sixth position that year, as it now holds the fourth largest crypto market valuation today. Tether (USDT) moved up from two years ago when it was in the seventh position and today, USDT is the fifth position. Tether is still the most valuable stablecoin and has been for the last two years in a row. EOS was in the eighth position back in 2019 and today, EOS has slid all the way down to the 35th top position in terms of market cap.

Bitcoinsv (BSV) was in ninth place in 2019 and stellar (XLM) held the tenth position in August the same year. BSV has plummeted to the 52nd position in terms of market cap and XLM is now the 22nd largest crypto asset. BSV had a $2.3 billion market cap back then and it has improved a bit (34.78%) to today’s $3.1 billion. Stellar had a $1.4 billion market valuation while today it is $8.5 billion, gaining 507%.

The Top Ten Crypto Assets in August 2020

In August 2020, things were also different. While BTC and ETH held the first and the second position, XRP was really close to being overtaken by tether (USDT) that year. XRP held the third position with a $12 billion market cap and USDT was around $10 billion in August 2020. At that time, BCH, BSV, LTC, and BNB remained top ten contenders. Meanwhile, Chainlink (LINK) held the fifth-largest market cap with a $5.7 billion valuation. LINK is now the 12th largest coin market cap today with $13.5 billion.

Cryptocurrency market capitalization in August 2020.

Crypto.com (CRO) was in the ninth position in August 2020 with a $3.5 billion market cap and CRO is sitting in the 43rd position today with $4.1 billion. It is interesting to note that all the top ten coins in 2021 have market caps of over $20 billion. While in August 2020, only five coins had market caps over $10 billion, and in 2019 only three coins were over $10 billion. CRO and BSV have seen very little increases in market valuation in two years, while other markets have seen much larger gains.

Moreover, coins like dogecoin (DOGE), solana (SOL), cardano (ADA), polkadot (DOT), and usd coin (USDC) are all newcomers as far as the top ten cryptos are concerned. Solana (SOL) is up more than 19% in 24 hours and recently flipped dogecoin (DOGE) in terms of market cap.

What do you think about the changes in the top ten cryptos during the last two years? Let us know what you think about this subject in the comments section below.

Solana Taps Another All-Time High Eclipsing Dogecoin’s Market Cap, SOL Jumped Over 300% Last Month

Crypto assets have seen significant gains over the last month and one such digital currency, solana (SOL) has propelled itself into the top ten rankings and recently flipped the crypto asset dogecoin’s market cap position. As of Friday, solana currently holds the seventh-largest market valuation out of all the coins in existence with a market cap of around $41 billion.

Solana Skyrockets More Than 300% in 30 Days

In mid-August, Bitcoin.com News reported on solana (SOL) capturing fresh all-time highs and since then the crypto asset has gained a lot more value. At that time, solana had just made it into the top ten crypto market capitalizations and today it has risen to the seventh-largest crypto market worldwide. Our report noted that SOL was trading for $74 per unit and today SOL is swapping for $141 per coin, up 90.54% since the market report published on August 17.

SOL has gathered double-digit gains in 24 hours, jumping over 20%. In the last week SOL has gained a whopping 85.3%. Two-week stats show SOL jumped 93.1% and during the last month, solana has gained a massive 310.8%. Year-to-date, solana has risen 3,277.6% and is one of 2021’s top-performing crypto assets. Tether (USDT) is solana’s largest trading pair as SOL/USDT swaps represent 54% of all SOL trades today.

Solana Taps Another All-Time High Eclipsing Dogecoin's Market Cap, SOL Jumped Over 300% Last Month

The SOL/USDT pairing is followed by USD (14.87%), BTC (12.80%), BUSD (7.91%), TRY (2.95%), and ETH (2.76%) as far as the top SOL pairs are concerned. Out of the $2.3 trillion in value, solana’s market cap represents 1.73% of the entire crypto-economy, in terms of dominance. Solana pushed dogecoin (DOGE) out of the seventh-largest position on Thursday and the market valuation continues to grow.

With a $41 billion market cap, solana still has a ways to go to eclipse XRP’s $59 billion valuation. The crypto asset SOL tapped an all-time high today, on September 3, 2021, reaching $145.22 per coin. There’s $7.7 billion in global trade volume paired with solana (SOL) on Friday.

What do you think about solana’s (SOL) massive gains and the coin moving up the top ten crypto cap ladder? Let us know what you think about this subject in the comments section below.

SEC Allegedly Probes Operators Behind World’s Largest Decentralized Exchange, Uniswap: Report

SEC Allegedly Probes the Operators Behind the World's Largest Decentralized Exchange Uniswap: Report

According to a recent report, the U.S. Securities and Exchange Commission (SEC) has allegedly started probing the startup that operates the decentralized exchange (dex) Uniswap. The dex platform Uniswap is the largest dex in terms of trade volume with over $10 billion in crypto tokens swapped in the last seven days. Sources from the report also said SEC enforcement is investigating crypto lending applications as well.

Unnamed Sources Familiar With Matter Say SEC Is Investigating Defi Exchange Uniswap

A recently published report from the Wall Street Journal’s (WSJ) Dave Michaels and Alexander Osipovich claims unnamed sources told the outlet that SEC enforcement attorneys are probing the dex Uniswap Labs. The report shows that the SEC has not commented on the matter but a Uniswap Labs spokesperson said:

[Uniswap is] committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.

The unknown informants told the WSJ that the SEC enforcement officials want to know how Uniswap is marketed, and it wants information on crypto lending applications. The “people familiar with the matter” said that the SEC wants to find out if the dex or lending applications “resisted oversight.” The investigation seems to be a developing story and the WSJ says no allegations have stemmed from the informant’s information.

Uniswap Commands More Than 60% of Ethereum-Based Dex Trade Volume, Uniswap Labs Recently Removed 100 Tokens

Uniswap is the largest dex by trade volume today and as more than a dozen dex platforms including Uniswap captured $16 billion this week in volume, Uniswap commanded $10.3 billion of that volume. Uniswap commands 65.1% of all the dex trade volume (Ethereum dex platform volumes only) on Friday morning (EST), according to Dune Analytics stats.

News of the alleged probe into Uniswap Labs follows the flak the company got for removing 100 tokens from the main user interface at the end of July. It was assumed at the time that some of the 100 tokens listed could be deemed unregistered securities by U.S. regulators. “These tokens have always represented a very small portion of overall volume on the Uniswap Protocol,” Uniswap Labs wrote at the time.

The story concerning the SEC allegedly investigating the world’s largest dex application is still developing and we promise to keep our readers informed of any updated information pertaining to this topic.

What do you think about the report that says the SEC may be probing the world’s largest dex platform, Uniswap? Let us know what you think about this subject in the comments section below.

Evan Luthra Joins Soldex as Lead Investor

Evan Luthra is a prolific angel investor having been in crypto since 2014 and early discoverer in Eaze.com (Fastest growing on-demand Tech company in 2016) and Wheelys Cafe (over 1000+ coffee shops in 40 countries), more recently investing in the seed round of Hashgraph.com (The billion dollar Crypto Currency), Admix.in (Biggest Gaming AD Publisher), JoshTalks, FTcash and more.

The leading entrepreneur inspired many when he exited his first company and simultaneously took over the TedX stage at the age of 17. Evan is a successful keynote speaker with hundreds of speeches around the world for organizations like United Nations, Nielsen, Google, Blockchain Life, and many more.

Evan also has over 2 Million followers on Instagram (Instagram.com/evanluthra) where he shares daily tips about investing in crypto markets. There will be powerful synergies between Evan’s portfolio companies, industry network and the Soldex.ai ecosystem.

 

About Soldex.ai

Soldex.ai is one of the first basic decentralized exchanges (DEX) built on Solana. Soldex.ai allows users to conduct peer-to-peer transactions in a safe and reliable manner, with liquidity provided by users. Third-generation cryptocurrency exchange tat aims to use advanced machine learning and neural network algorithms to solve the current problems faced by decentralized exchanges in order matching, centralized exchanges, and trustless custody.

Website | Twitter | Telegram | Medium


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Australia, Singapore, Malaysia, and South Africa to Trial Cross-Border Digital Currency Payments

Australia, Singapore, Malaysia, and South Africa to Trial Cross-Border Digital Currency Payments

The central banks of Australia, Singapore, Malaysia, and the Republic of South Africa have set out to test the use of state-issued digital currencies in cross-border payments. The trial, led by the Bank for International Settlements, aims to establish whether they can simplify transactions and make them cheaper.

Reserve Bank of Australia Teams Up With Counterparts in Asia-Pacific, Africa on CBDC Project

While a number of nations are still testing their central bank digital currencies (CBDCs) in domestic applications, some are preparing to conduct international experiments. The Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank have joined forces to carry out cross-border trials.

Australia, Singapore, Malaysia, and South Africa to Trial Cross-Border Digital Currency Payments

The cooperation aims to develop shared platforms for cross-border transactions using different CBDCs, the institutions said in a statement quoted by Reuters. The scheme is led by the Bank for International Settlements (BIS) Innovation Hub. Fraziali Ismail, assistant governor at Bank Negara Malaysia, has been quoted as saying:

The multi-CBDC shared platform… has the potential to leapfrog the legacy payment arrangements and serve as a foundation for a more efficient international settlement platform.

The prototype platforms should enable financial institutions to transact directly with each other using the sovereign digital currencies, the report elaborates. This approach would allow them to eliminate the need for intermediaries. Transaction times and costs are also expected to decrease. The participants will explore various designs in terms of technology, governance, and operation.

This isn’t the first experiment of this kind. BIS Innovation Hub heads another project involving central banks from China, Hong Kong, Thailand, and the United Arab Emirates. In June, Bank of France and the Swiss National Bank announced a collaboration with the hub to trial the use of wholesale digital currencies in cross-border settlements. In July, the IMF, the World Bank, and BIS recommended that countries work together on CBDCs to enhance cross-border payments.

Earlier this year, financial authorities in Hong Kong launched a second round of tests for the national digital currency issued by the People’s Bank of China, which has arguably the most advanced CBDC project. The Chinese special administrative region revealed it’s going to connect its domestic payments system to the mainland’s digital yuan network to assess the currency’s usability in cross-border scenarios.

Do you think central bank digital currencies will challenge the current international payments system? Share your thoughts on the subject in the comments section below.

Cheap Power Brings Bitcoin Mining Boom to Venezuela as Country Moves Toward Digital Economy

venezuela

The very low power rates in Venezuela have created a powerful incentive to mine Bitcoin for a lucky few that have the capital (and dare) to purchase miners and infrastructure in the country. The rise of digital currencies has created a new industry that uses cheap energy and turns it into precious Bitcoin. In other regional news, Axie Infinity, a play-to-earn game, has created opportunities for the less fortunate ones. The country is going digital because of the possibilities these new tools offer.

Cheap Power Creates Mining Opportunities in Venezuela

The cheap cost of electricity is creating opportunities to leverage this resource and turn it into bitcoin, a more scarce and valuable resource. This is what many investors have been doing in the country. Theodoro Toukoumidis, CEO of Doctorminer, a services-oriented Bitcoin mining company, has more than 80 ASICS working non-stop. According to him, all those machines put together cost less than $10 in power monthly.

However, each of the mining machines costs approximately $400 dollars, a steep price for a country whose minimum wage doesn’t reach the $10 threshold. In any case, the price of mining goes even higher, with miners having to adapt power infrastructure and make repairs to be able to connect to the aging power grid. Venezuela is a country that went through a power rationing period that left citizens suffering disastrous blackouts back in 2019.

The situation has since improved, but there are still analysts worried about the effect that a power shortage could have on the operation of miners. Just last month, authorities in a key Venezuelan state disconnected the power supply to all miners due to their supposedly massive power consumption. These miners have since been reconnected to the power grid, after a delay.

The Hidden Cost of Mining

Mining has been a regulated and legal activity in Venezuela since Sunacrip, the Venezuelan cryptocurrency watchdog, established it as such last year. To establish mining operations, investors must comply with a series of requirements. Complying with these steps can be a little complicated, but these ensure that, in theory, the government will not take action against them. But experience states otherwise. There have been many stories about authorities visiting miners to extort them due to their activities.

In fact, Sunacrip had to clarify miners couldn’t be visited by state security forces without a representative from the institution, to curb the incidence of these questionable visits. But due to this, some miners have decided to carry out their activities hidden from the eye of the regulator. This has resulted in the seizure of thousands of mining machines by the authorities.

Digital Economy Blooming

All of these factors combine to create a climate that seems conducive for the development of a digital economy, allowing some Venezuelans to escape the dire situation the country faces. While most Venezuelans cannot purchase and organize a mining operation, there are other ways to make money in crypto that carry a lower entry cost. Axie Infinity, a play-to-earn game that was launched in 2018, has allowed some Venezuelans to invest and offer scholarships for others to earn while playing the game.

Axie Infinity has become so popular that a number of academies offering scholarships for the game have gained notoriety in social networks. Vzlatothemoon, one of these academies, has reached trending status on Twitter several times. A scholarship in Axie means that an investor lends the characters needed to play the game to another player, and they split the earnings. This is now so popular in Venezuela that more than 300 stores are currently accepting SLP, one of the native tokens of the game, as a payment option.

What do you think about the digital economy that’s brewing in Venezuela? Tell us in the comments section below.

Central Bank of Brazil Researches Creation of Digital Real

Brazil

Fabio Araujo, a representative of the Central Bank of Brazil, talked about the possible development of a Digital Real at a public hearing before the Committee on Science, Technology, Innovation, Communication and Information Technology of the Brazilian Senate. Araujo clarified that the Digital Real is still at the debate stage, and they are determining the demand for such an instrument.

Central Bank of Brazil Still Debating Digital Real

The Central Bank of Brazil is still studying the creation of a Digital Real, according to statements given by Fabio Araujo, a representative of the institution. Araujo stated at a recent public hearing with the Senate Committee on Science, Technology, Innovation, Communication, and Information Technology that the bank is still debating the need society might have for a central bank digital currency (CBDC). Araujo declared:

Our goal is to clarify what demands society presents to Real Digital. After that, we will soon move on to the testing phase with proof of concept and possibly an innovation laboratory, and this should take place throughout 2022.

Araujo also revealed the Central Bank of Brazil was still having meetings with different parties that could help to design the Digital Real project. Senator Cunha, the senator that proposed the meeting, stated that the use of digital currencies was a necessary discussion due to the lack of information on the subject. He stressed:

We need to debate this topic. Digitization is a reality in the lives of the population, in various fields, but there is still no clearer information on how this will happen regarding the money in circulation in Brazil.

Central Bank Digital Currencies vs. Cryptocurrency

However, this openness about the Digital Real, a central bank digital currency, doesn’t translate to a de-facto approval of cryptocurrencies like bitcoin and ethereum. In fact, the stance that the Central Bank of Brazil has taken is a negative one. Araujo clarified:

CBDCs are not to be confused with cryptoactives. The Central Bank of Brazil maintains the opinion that cryptoactives are speculative assets and bring high risk to individuals’ portfolios.

While the Central Bank of Brazil is still in the research phase of a hypothetical Digital Real, it issued general guidelines that such a currency must follow in May, showing there is real interest in the subject. This puts Brazil at the vanguard of central bank digital currency investigation in Latam, a region where central banks don’t seem to be too interested in the issue just yet.

What do you think about Brazil’s research regarding a Digital Real? Tell us in the comments section below.