Brazil is on the way to becoming a decentralized finance (DeFi) power, says Accenture study

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Decentralized finance (DeFi) has high potential for expansion in Brazil and companies must be prepared for a profound change in the financial system, says a study developed by Accenture and shared exclusively with the InfoMoney CoinDesk.

DeFi is the suite of smart contract and blockchain technologies that automate traditional financial processes by eliminating on-chain intermediaries such as banks.

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“Proof that DeFi has been gaining ground is the expressive growth of capital invested in protocols in the last 2 years, with great emphasis on 2021 – the year in which the investment more than quintupled”, says the report.

For Accenture, DeFi is important, among other reasons, because it allows substantial cost reduction by disintermediating financial processes. The technology is estimated to be able to save US$150 billion annually if adopted globally.

Given this scenario, the company points to Brazil as a potential market for DeFi due to the success of other initiatives of technological disruption of the traditional financial system, such as Pix, digital duplicates, in addition to the Open Finance agendas and the development of the digital real. .

The company also recalls that the volume of transactions with stablecoins grew 300% in Brazil in 2021, and highlights a survey by the exchange Crypto.com, which reveals that 59% of Brazilians intend to invest in crypto for the first time in 2022.

“We have been receiving very strong demand from CEOs and C-Levels for the crypto topic not only from financial market clients, but also from other non-banking industries,” comments Dennis Nakazawa, Executive Director of Financial Services at Accenture.

“One of their concerns is related to the potential impact that crypto developments could have on each of the industries. For example, decentralized finance depending on how it is regulated could create a disruption in the banking market”, he explains.

(Disclosure/Accenture)

In the executive’s view, the omission of DeFi in the crypto-asset regulation project being discussed in the Chamber should not hinder the growth of the sector in the country.

“In fact, the regulatory framework will be a watershed in this market, because it will allow the entry of institutional participants, leveraging the values ​​moved and allowing even more innovation, especially in sectors with greater lack of finance”.

To take advantage of the wave of innovation, Accenture recommends that companies follow regulatory developments, invest in a team with the appropriate technical capacity, and venture into the DeFi world, either by integrating protocols that already exist or by creating their own smart contracts.

The Accenture survey is not the first to show Brazil as a power in decentralized finance. Last week, MetaMask revealed that the country is second only to the United States in the adoption of DeFi solutions, and is the second fastest growing in the use of the digital wallet.

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