Brazilian regulators turn to blockchain in face of recession

Blockchain is considered useful for a lot of things and helping to curb economic disasters was just added to this long list. Regulators in Brazil are now thinking of turning to the decentralized ledger technology in the face of a potential recession. It was also revealed that more people in Brazil are investing in the crypto market than they are in the local market, thus showcasing just how desperate the situation is.

Speaking to Cointelegraph, Atlas Quantum chief sales officer, Bruno Peroni highlighted one of the biggest problems that Brazil is facing right now. There appears to be a higher trust in the crypto market than there is in the Brazilian stock market. This is a disastrous sign that is only further exacerbated by the 12.5 percent unemployment rate of the country.

“We have a higher number of people investing in crypto than on the local stocks markets. The most recent estimates show that there are 1.5 million Brazilians investing in crypto, whereas the local stock markets, called B3, has just reached 1 million investors,” Peroni said.

The current trail of thought among economists studying the region is that Brazil is now vulnerable to a recession. In response to this, several federal officials have filed and are supporting a bill that will essentially use blockchain and artificial intelligence to help improve the situation. The bill is titled the “Digital Provision of Public Services in Public Administration – Digital Government.”

The South American nation’s position on blockchain and cryptocurrency have also seen several evolutions of late. Among its most recent acts is the creation of new rules to govern cryptocurrency in the country. These are intended to help reduce the cases of fraud, which can be a huge problem considering how many more people are investing in the crypto market compared to the local stock market.