Crypto is Expanding in Brazil as Coinbase Swoops to Buy its Biggest Crypto Exchange

Coinbase is reportedly close to acquiring 2TM, the owner of Mercado Bitcoin, Brazil’s largest exchange, according to a local newspaper that didn’t disclose its sources.

According to the report by Brazilian newspaper Estadão, Coinbase and 2TM have been in talks since April 2021, a year in which the South American nation experienced a massive surge in crypto adoption that tripled stablecoin trading.

Mercado Bitcoin surpassed three million customers in 2021, of which one-third joined the exchange in that same year. During that time, the exchange reached trading volumes of over US$7 billion.

Rio de Janeiro Turns into a Crypto Hub

Shortly after the crypto boom in Brazil, several crypto companies shifted their focus onto the nation, including other leading exchanges such as Binance and Crypto.com.

Rio de Janeiro – Brazil’s third-largest city by population – will reportedly receive crypto for tax payments, making it the first Brazilian city to embrace payments via digital assets. Commenting on the matter was Binance CEO Changpeng Zhao, who tweeted:

Binance Expands its Brazilian Base

During his visit to Brazil on March 17, Zhao said Binance was set to acquire several banks and payment processors nationally and also looked forward to expanding its 100-person Brazilian team.

Brazil has been one of the few countries in the South American region to have supported and accelerated the development of proper infrastructure for digital assets nationwide.

As Crypto News Australia reported, last year Brazil became the second jurisdiction to approve a Bitcoin exchange traded fund (ETF). Both Brazil and Peru are now looking forward to developing their own central bank digital currencies (CBDCs) by the end of 2022.