FTX Collapse Won't Impact Daily Crypto Usage in Brazil: Transfero CEO

The fall of FTX has undoubtedly hurt investor sentiment towards crypto, but that won't change its popularity as a medium for cross-border transactions.< /p> Interview

The collapse of the FTX crypto empire may have hurt the sentiment of Brazilian retailers and institutions towards crypto. However, its impact will not affect ordinary citizens, who will continue to use crypto for cross-border transactions.

Reflecting on the recent fall of FTX, Thiago César, the CEO of on-ramp fiat provider Transfero Group, said the exchange's fall, like in many countries around the world, has damaged trust around exchanges centralized cryptography and cryptography in general.

Transfero Group is closely tied to the Brazilian crypto ecosystem and FTX, as it was the fiat on-ramp and exit provider for the exchange and is also the issuer of the Brazilian stablecoin BRZ, which was listed on the late exchange.

Caesar told Cointelegraph that the stock market crash removed a “great source of liquidity” from the market, as FTX ranked in the top three by trading volume.

He also noted that the uncertainty surrounding centralized crypto exchanges has caused a "big outflow" from exchanges in Brazil, with many considering self-custody - estimating that at least 20% of trading volume has been lost on trades so far :< /p>

“A lot of people even try to liquidate their positions in crypto and we just hold money in the bank account.”

Caesar noted that the FTX saga would make crypto investing a “harder sell” for new investors and traders.

"For the crypto investor/trader of course. It's a harder sell now. If you're talking to someone who isn't crypto savvy and trying to convince them to invest, by especially in Brazil, people have always been very skeptical of crypto. Now it's more difficult,” he said.

However, he notes that for people who use crypto as a means of cross-border payment or “internationalization of money,” the FTX collapse is unlikely to have an impact.

“Much of the crypto volume in Brazil comes from players who are willing to exchange their local currency for an international dollar-denominated liquid asset. So in that sense, the market won’t die out because the crypto is just rails for that."

In October, a Chainalysis report revealed that