Prominent bank ventures into the world of cryptocurrencies with innovative trading service
Itau Unibanco, Brazil’s largest lender, has made a noteworthy entrance into the cryptocurrency market by introducing a trading service for its clients on its investment platform. The initial offering includes the trading of Bitcoin (BTC) and Ether (ETH), with plans to eventually incorporate other cryptocurrencies.
This strategic move positions Itau to compete with local entities such as the crypto exchange MB, the digital assets unit Mynt of investment bank BTG Pactual, and global players like Binance in the Brazilian market. The decision comes at a time when the market is characterized by uncertainty, as demonstrated by financial services firm PicPay’s recent decision to exit the market due to “regulatory uncertainties,” and brokerage and investments company XP discontinuing its crypto service.
However, despite these challenges, several players are continuing to drive cryptocurrency innovation in Brazil. The country’s central bank is preparing to launch its own digital currency, Drex, with major financial institutions like Itau Unibanco, BTG Pactual, and Santander Brasil intensifying their efforts in this regard. These banks have been expanding their workforce and making significant investments in the necessary technological infrastructure for the widespread adoption of Drex, which provides a favorable backdrop for Itau’s new trading service.
In addition to these developments, it is worth mentioning that Brazil plans to implement a new tax on foreign cryptocurrency earnings by 2024. This further emphasizes the importance of the ongoing advancements in the country’s digital currency landscape.
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