Brazilian Fintechs show growing interest in blockchain technology

By January 10, 2020 Bitcoin Business
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This picture show a fintech entrepreneur holding a cryptocurrency.

A recent study on the financial startup’s scenario caught the attention of PwC Brazil and ABFintechs. According to Valor Invest, Brazilian Fintechs have a high interest in Artificial Intelligence, Machine Learning, and Blockchain, the technology used in cryptocurrencies such as Bitcoin.

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According to the study most Brazilian fintechs are trying to resolve pain-points related to the means of payment. In this context it is unsurprising that these companies are exploring blockchain technology.

A large portion of the Brazillian population is unable to access basic financial services. Any company that can solve this problem is likely to reap big rewards. Blockchain technology could offer an easy answer that would allow smaller fintech companies to by-pass traditional financial institutions and bring their products to market faster.

The Brazilian fintech ecosystem continues to grow

According to Valor Invest, there are about 500 Fintechs currently operating in Brazil. 57% of these would be in São Paulo, the state that holds the greatest volume of new fintech start-ups. Around 22% of these startups want to improve upon the means of payment, generally by leveraging blockchain technology.

The study that was conducted by PwC Brazil with ABFintechs, showed that the greatest interest of these companies is in Artificial Intelligence (48%) and machine learning (46%). About 44% of respondents said they are willing to innovate with the underlying technology of cryptocurrency.

Brazil continues to adopt blockchain technology

For the enthusiast, Bitcoin represents an panacea for all our financial woes but the truth is always more complicated. The crypto market has grown rapidly over the past few years, largely driven by the adoption of cryptocurrencies by companies.

In recent days, for example, Cielo (CIEL3) has partnered with Bitfy to accept Bitcoin on their machines. With this partnership in place, the businesses that accept Bitcoin will have the receipt done in Real, with the currency conversion being done by Bitfy. Recently, Natura said that there is room for blockchain technology within its operations. In addition, Valid also acquired a Fintechs to strengthen its operations with blockchain technology.

BlueBenx is another company that operates in Brazil with a financial solution involving cryptocurrencies. From 2020 onward, customers may have a BlueBenx Account, which will make TED, transfers, purchase, and sale of cryptocurrencies in one solution. In short, cryptocurrencies and blockchain technology have been increasingly coming together with Brazilian Fintechs and traditional companies. This is an important movement for Brazil to be able to grow and innovate, especially in a market that banks still have sovereignty.

Finally, most Brazilian Fintechs have stated that they do not see banks as enemies, but as partners. In addition, 63% already have international operations. Brazil already has 11 unicorns in the startup sector, with Nubank being the biggest highlight.

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