September 24, 2023

Brazilian Bank Bradesco Not Interested In Crypto

One of the biggest banks in Brazil, Bradesco, said that it does not have any immediate plans of entering the crypto market any time soon.

The chief executive of Bradesco, Octavio de Lazari Junior, said that the firm was not interested in introducing crypto services for its clients, given that the market was still quite ‘small’.

Crypto market too small

A number of traditional private banks and neobanks have introduced crypto investment services in their portfolios, or are working on doing so, in order to retain their clients.

However, there are some institutions that have chosen to remain on the sidelines. The second biggest bank in Brazil called Bradesco is one such bank.

It is also one of the biggest banks in Latin America in terms of assets and caters to almost 70 million clients and stated that it has no interest in the crypto market.

The CEO of Bradesco talked about his stance on crypto and related investments, along with their evolution in Brazil.

The chief executive stated that the crypto market in the country was too small for now and also said that it had dangerous characteristics for those interested in investing in it.

He asserted that crypto investments are not tangible and tend to be riskier and added that people were aware of the risk they were taking. But, he believed that the market was just too small.

No plans

De Lazari Junior said that the company does not have any plans on entering the crypto space for now, but he did say that things could change in the future.

He also advised that if any of the bank’s clients are interested in trading in the crypto market, they can take advantage of its investment arm called Agora for this purpose.

The CEO said that this was just one of the three important crypto pillars. He said that while people may put very small resources in the crypto market, there are other applications that could have more appeal.

Other pillars

He said that one of these is about the tokenization of assets that represent real assets on the blockchain via blockchain-validated tokens.

The purpose is to make trading of these assets easy for people. The CEO said on this topic that the Brazilian bank was currently looking into tokenization projects of debentures.

As far as the third pillar of the crypto market is concerned, it is central bank digital currencies (CBDCs).

This concept has gained a great deal of popularity, not just in Brazil, but in other countries of the world as well.

Several of them have made a considerable amount of progress when it comes to developing their respective CBDCs and Brazil is also working on it.

The country is developing a pilot for the digital real and they intend the CBDC to give private banks the ability to issue their own stablecoins that would be backed by the deposits of the digital real.

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