#175: Nubank's Velez says Trump will be good for crypto
Plus: Petrobras explores bitcoin mining; Bolsonaro memecoin launches on Solana
Olá pessoal!
Greetings from Zurich, Switzerland and welcome to Brazil Crypto Report for the week of January 20-24, 2025!
I’m wrapping up an intense week in Davos, Switzerland for the World Economic Forum. It was a really important week for crypto on the world stage — not just because the president of the United States launched a memecoin, but because the industry and asset class has reached a point of legitimacy that makes it impossible for world leaders to ignore.
My friend and roommate for the week Gareth Jenkinson of CoinTelegraph even asked the president of South Africa if he plans on launching a memecoin of his own 😂
I had the opportunity to host a panel on crypto adoption in Brazil at the Brazil House with Andre Portilho from BTG Pactual and several other luminaries, and I was able to record more than 20 interviews from the Filecoin Foundation Penthouse just across the street from the main WEF venue (best view in town!)
🔎 What’s in this week’s BCR?
Bolsonaro X account hacked by memecoin promoters
Moody’s highlights Drex, financial tech in Brazil in new report
Trump coin fever rocks Brazil
Nubank CEO Velez says Trump will be good for crypto markets worldwide
Central Bank looks to improve Drex messaging after Pix backlash
Thanks for reading and have a great week!
- AWS
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This week’s episode is Part Two of my conversation with Antonio Neto. We dive into his experience running the Brazil and Latin America business for FTX before the exchange collapsed in late 2022. We talk about what it was like to be working inside the exchange when everything imploded, Sam Bankman-Fried’s role in the craziness and whether justice was served in SBF’s trial
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Petrobras explores bitcoin mining
The Brazilian state-owned oil company is starting a new R&D project that explores bitcoin mining and tokenization, among other initiatives focusing on blockchain applications in the company’s value chain.
Other energy companies in countries like Russia, Saudi Arabia and Argentina have embarked on similar projects.
Partners in the project include the Leopoldo Américo Miguez de Mello Research, Development and Innovation Center, Petrobras University and the Pontifical Catholic University of Rio de Janeiro.
Recall that in 2023 Petrobras announced a collaboration with Cardano Foundation to provide blockchain education to employees.
Blocknews BlockTrends Livecoins Exame CoinTelegraph Brasil
Hackers invade Bolsonaro’s X account to promote $Brazil memecoin
Hackers broke into former president Jair Bolsonaro’s X account to promote a $Brazil memecoin launched via Pump.fun on Solana
Portal do Bitcoin Livecoins CoinTelegraph Brasil
Moody’s highlights Drex, financial tech in Brazil
The credit ratings agency published a special report looking at financial technology in Brazil, with a particular emphasis on Pix and Drex. The report argues that these two tools will be a critical in expanding financial inclusion in Brazil.
Moody’s argues that Brazil is one of the world’s most active and innovative when it comes to development and adoption of both crypto and traditional fintech.
The report argues that Drex will pave the way for traditional finance institutions to innovate using smart contracts:
"Commercial banks will be able to use distributed ledger technology (DLT) and the system's tokenization capabilities to offer innovative financial products — such as credit, investments, and insurance — to their customers, while reducing administrative costs.”
"Drex will be another advancement within the Central Bank's innovations, complementing PIX and strengthening the digital infrastructure of the national financial system.”
Trump coin fever rocks Brazil
The Trump memecoin was the most traded cryptoasset in Brazil the weekend after it launched, according to data site CoinGecko. As of this writing the coin is the second most popular coin in the country.
Brazilian crypto asset manager QR Asset argued that the launch of the Trump and Melania memecoins created a new paradigm for the market:
“TrumpCoin represents a new frontier for the market, where politics, technology and finance intersect in an unprecedented way. On the one hand, it expands the reach of the sector, showing how cryptoassets can be used to create political and financial engagement. On the other, it highlights the risks of centralization, narrative dependence and regulation.”
Platforms like Mercado Bitcoin, Binance, Digitra and others moved to quickly list the token. It is also available on DEXes like Raydium, Orca and Meteora.
CoinTelegraph Brasil BeinCrypto
Nubank’s Velez: Trump benefits crypto
Nubank CEO David Velez said during remarks in Davos for World Economic Forum that he expects the Trump Administration to have a positive impact on cryptocurrency markets.
He said that “the last thing the crypto market needed was for the United States to give its approval to this industry” and that Trump “completely changes how regulators worldwide will think about crypto”
“Brazil has always been very pro-crypto and very advanced, but for the rest of the world, this opens up potential opportunities for international expansion for someone like us, via crypto and other technologies”.
He also said that he is not worried about neither rising interest rates in Brazil nor a potential increase in defaults thereafter.
Velez highlighted that the company, which has 110 million total users and 100 million in Brazil, is considering international expansion. The bank will likely move the location of its holding company headquarters away from the Cayman Islands, and possibly to the United Kingdom.
“I think the United States may have an opportunity. I think countries in Africa may have an opportunity. And countries in Southeast Asia. Last month, we announced an investment in Nubank South Africa and the Philippines.”
Velez also commented on the unfortunate state of Brazil’s fiscal situation. Speaking to Monica Scaramuzzo of Valor at the World Economic Forum, he lamented the fact that “nobody is talking about Brazil” at the event. “We aren’t on anyone’s radar.”
“Many investors have left [Brazil] and have already lost confidence. And once that confidence is lost, it is difficult to regain confidence.”
Central Bank looks to improve Drex messaging after Pix backlash
Brazil’s Central Bank is working to improve the messaging around its Drex CBDC/tokenization platform in light of the social media backlash incurred over the Pix R$5,000 rule.
The government was forced to walk back the rule due to mounting pressure on social media and other channels.
Concerned that the same thing could happen with Drex, the bank is working proactively to dissociate the project from greater state control over the population’s finances.
🗞Brazil Crypto News Rundown
📈 Markets
Brazil’s Central Bank reported that “imports” of crypto assets into the country in 2024 totaled US$18.2 billion, up nearly 50 percent from US$12.3 billion in 2023. Crypto asset flows represented a deficit of US$16.7 billion, up 43% over the prior year. (Valor) (CoinTelegraph Brasil)
Bitget CEO Gracy Chen shared her 2025 predictions in an op-ed for Exame’s Future of Money.
Bitybank has entered into a partnership with Grupo Primo, led by financial influencers Thiagro Nigro and Bruno Perini. (CoinTelegraph Brasil)
A Bolsonaro memecoin called Patriota Coin raised R$2.3 million in 24 hours. CriptoFacil Livecoins CoinTelegraph Brasil
Ripio CEO Sebastian Serrano said he expects bitcoin to hit US$200,000 this cycle.
"We still have a lot to grow and I believe that this growth will occur in the first half of the year, BTC may reach US$ 200 thousand, but I believe that after that we will have a correction and the beginning of a bear market.” (CoinTelegraph Brasil)
📲 Adoption
The World project is pushing back in Brazil amid questions from the public and authorities about its iris scanning process and biometric data protection. In an interview with Exame, World’s Brazil operations manager Rodrigo Tozzi argued that protection of user data is a core pillar of the project and that selling that data would be anathema to its core mission:
"Privacy is a fundamental pillar of the project, it was developed with this in mind and how to prove someone's humanity without collecting data and protecting users. It's the opposite of buying data."
"If you evaluate the process, you can't call it a sale. If it were a sale, World should be keeping something, and it doesn't keep any of the person's information. It's an anonymous process and people have self-custody of the information.” (Livecoins) (CoinTelegraph Brasil)
BRX Finance, a joint venture between Transfero and Fuse Capital has entered into a partnership with SouRev, a platform focused on providing wholesale credit to resellers. The objective is to provide blockchain-based receivables financing at rates that are more competitive than those currently on the market. (BlockNews)
The WEB3DEV and Casta Crypto communities announced a merger to create WEEVER — a new company focused on growing the Web3 ecosystem in Brazil. (CoinTelegraph Brasil)
Rayls, the blockchain built by Parfin, will be integrated with the Arbitrum network. (Valor) (CoinTelegraph Brasil)
Alleged crypto pyramid scheme promoter Marcelo Prata (behind the Unick Forex entity) was eliminated as a contestant from Big Brother Brasil. (Portal do Bitcoin)
Bradesco is implementing a blockchain-based digital ID solution for the Edmundo Vasconcelos Hospital in Sao Paulo. The hospital will use it to centralize registrations and allow patient data-sharing within the hospital’s app. (CoinTelegraph Brasil) (Livecoins)
A new report by Ava Labs and Mastercard highlighted the potential for asset tokenization in Latin America. (CoinTelegraph Brasil)
A joint venture between Brazilian bank Braza Bank and Portuguese payments company Unicre announced a solution that allows Brazilian customers to make purchases in Portugal with Pix. (CoinTelegraph Brasil)
🏛 Policy, Regulation and Enforcement
Supreme Court justice Alexandre de Moraes overturned a lower court decision that annulled key evidence in the case against Faria Lima crypto asset manager Titanium Asset — which is accused of scamming investors. (InfoMoney) (Portal do Bitcoin)
Footballer Willian Bigode was sentenced and ordered to reimburse former colleague Mayke R$4.5 million for losses incurred via investments in Xland, an alleged crypto pyramid scheme. (Portal do Bitcoin) (Livecoins) (BeinCrypto) (CoinTelegraph Brasil)
Binance’s VP of Latam Guilherme Nazar warned users of the platform that scammers have created a fake Whatsapp account using his image and urged caution regarding investment schemes promoted via phone call. The remarks came during a live AMA with 14,000 customers on Binance Square.(Livecoins)
The CVM, Brazil’s securities regulator, swore in 44 new staff — addressing a critical shortage of technical staff at the agency. CVM president Joao Pedro Nascimento said:
“This institution has not had the institutional reinforcement of new employees for over 14 years. The reinforcement that your arrival represents today was one of the fundamental pillars that I have been asking for since I was given this new mission. This joy is a shared joy.” (Valor) (BeinCrypto)
A court denied a request to release Pharaoh of Bitcoins Glaidson Acacio dos Santos — operator of the GAS Consultoria bitcoin investment scheme. (Portal do Bitcoin)
ABCripto announced the addition of real estate tokenization platform netspaces as its newest member. (CoinTelegraph Brasil)
Federal Deputy Marco Feliciano promoted a Pump.fun created memecoin on X briefly before deleting the post — suggesting the possibility of a hack. (Portal do Bitcoin) (Valor) (Livecoins)
