Brazil's Cryptocurrency Adoption Surpasses Stocks Amid Low-Income Investor Surge
Brazil has seen a significant surge in cryptocurrency adoption, surpassing traditional investments such as stocks. According to the second Brazilian National Crypto Survey conducted by Paradigma and Datafolha, with sponsorship from Coinbase and Hashdex, two-thirds of Brazilians are familiar with cryptocurrencies.
The survey polled 2,004 users across 137 municipalities between May 11-14, with a 95% confidence level and an error margin of 2%. Bitcoin and Ethereum are the most recognized digital assets, followed by Drex, Brazil's national central bank digital currency (CBDC) project.
Cryptocurrencies rank fifth among investment options in Brazil, with 17.2% of respondents investing in them. This surpasses investments in fixed-income bank certificates, foreign currency, and gold, but lags behind savings and real estate. Notably, Brazilians who have invested in crypto outnumber those who have bought stocks by more than double, estimated at around 29 million investors.
Low-income Brazilians are driving this trend, with over 77% of surveyed crypto investors earning less than three minimum wages. In fact, over a third of these investors earn less than a minimum wage, leading to the label 'moeda do povo' (the people's coin) in the poll's report.
The survey also found that 83% of crypto investors use bank apps and infrastructure to acquire and hold digital assets, while only 26% utilize self-custody wallets. Just 20% have held crypto in an exchange.