Brazil is ready for a fresh start to the new decade. Following a long period of extraordinary growth, which has made Brazil one of the world’s leading economies, the last decade was tougher than they deserve. Most importantly, the football team under performed in the 2018 world cup and the nation can hardly wait for a golden 2022. Read on to find out how Tritum will help bring gold to Brazil.
Since 2003 an amazing 25 million Brazilians have escaped poverty, according to OECD Economic Survey of Brazil. This is a remarkable number, and even more so considering the long recession that began in 2014. We are now expecting a strong comeback and the potential for further improvement is still very big.
Inequality in Brazil remains high (50% of the population receives 90% of the total income) and fiscal accounts have deteriorated substantially. We now need strong initiatives to create more jobs and for that to happen we need to see increased investments. Brazil have a problem with low investments and at Tritum Advisory we have looked at solutions for this.
First, let us look at some of the current issues causing investors to stay away from the Brazilian market.
Bureaucracy makes it expensive to do business in Brazil. A clear example of this is the time needed to prepare a tax return. Numbers presented by the World Bank show how this could take 20 times longer in Brazil than in many other countries.
We can also see, from the OECD report, how the barriers to entrepreneurship are high in Brazil. Almost twice as high as the OECD average, and much higher than the average for Latin America.
Brazil is also missing out of the benefits from an increasingly integrated global economy. High tariffs have been a strategy and resulted in no strong trade links. Average tariffs are 8 times higher than in Mexico or Chile. As a result imports and exports are a record low % of GDP.
Finally, corruption is very high in Brazil measured on a global scale. As shown in the following map, again from the OECD report, the Gini Coefficient in Brazil is higher than in most countries around the world.
Tritum Advisory has looked at how blockchain technology can be used to help Brazil to increase international trade and to attract global investments. In partnership with Bolsa Cripto, the leading platform for cryptocurrency and stable coins, we are introducing some key benefits to the Brazilian market.
- We bring global liquidity to Brazil. It has never been cheaper, faster and easier to attract global investors. The platform can exchange USD or EUR to Real in no-time and at a fraction of the historical cost. In partnership with Paxos, we have launched the most liquid, easily redeemable, and extremely well regulated US dollar stablecoin, PAX Standard in Brazil
- Fiat on-ramp, off-ramp is offered at low cost and efficient processing. Digital representation of USD, EUR or Real can instantly be transferred to cash. This is also a first ever PAX exchange listing on a fiat-onramp exchange in one of the top 10 markets in the world!
- Our digital Real, named BRMint, is introduced as an alternative to the use of the local banking infrastructure for payments, commerce, and international transfers. BRMint is always tied to the Real. It can never lose value and is developed specifically to remove unnecessary friction.
- Our platform provides low barriers of entry for investors, compared to traditional financial systems. The solution is designed to have zero bureaucracy, as a sharp contrast to the current Brazilian business environment.
- Soon to be announced, we are also bringing gold to Brazil! In partnership with Paxos we will give the Bolsa Cripto users the ability to invest in PAXG, the gold token. It has never been easier to invest in physical gold.
- Tritum finally brings international experiences to the otherwise shielded Brazilian economy. The quality and reliability of other digital platforms in Brazil have been less than adequate. Tritum’s international team with decades of experience from the global capital markets is here to make Bolsa Cripto the most transparent, efficient and trustworthy marketplace in Brazil. We combine this with the most secure institutional grade custody solution available globally, to guarantee safety of investors’ assets at all times.
To learn more, go to Bolsa Cripto and sign up to the simplest way to buy, sell, hold or transfer digital money.
The author is a co-founder of Tritum Digital Assets and a former Vice President of Nasdaq. He is also the former Finance Director of the US Consolidated Plan, the UTP Plan. The plan governs transaction information from all US securities exchanges, is approved by the SEC and provides millions of investors with reliable data.