Cryptocurrency is gaining traction in emerging markets, particularly in Brazil, despite being considered out of trend, according to José Ribeiro, CEO of the crypto exchange Coinext.

Predictions indicate that Bitcoin transaction volumes in Brazil will reach a record high next year, driven by the entry of international crypto exchanges such as Binance, OKX, and Coinbase.

Ribeiro attributes this growth to increased competition facilitated by regulatory clarity in Brazil's payment sector.

The economic outlook, including expectations of lower national interest rates and global events like the potential approval of a spot Bitcoin ETF in the U.S., could impact crypto prices.

Ribeiro emphasised the importance of focusing on fundamentals rather than price movements, as these have been consistent since Bitcoin's inception.

Regulatory frameworks play a crucial role in promoting innovation and establishing reporting standards for tax compliance.

Ribeiro said that regulations are necessary to create a fair playing field with offshore firms that are not subject to the same tax obligations and noted that Brazilian regulators have shown openness to discussions about cryptocurrencies and payments.

The Brazilian central bank has implemented the PIX payment system, enabling instant transactions between individuals and businesses.

Additionally, Brazil is preparing to launch its digital currency, DREX, next year, which spectators believe will further drive blockchain adoption in the country.