Coinbase, a cryptocurrency exchange based in the United States, has formally announced that it has integrated the Brazilian government’s payment system Pix, which has over 140 million customers. This collaboration would enable crypto purchases and withdrawals in Brazilian reals. Coinbase has announced that its app is now completely bilingual and offers 24-hour assistance.
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Reason Behind the Expansion
Recall that Coinbase established a technical hub in Brazil back in 2021. Almost 40 full-time engineers were hired at that time, and eventually a country director. Despite the exchange platform’s extended presence in the nation, Brazilian Coinbase users could only use their credit cards to buy cryptocurrency. not prior to this extension.
Brazil is one of the company’s priority markets in terms of its international expansion strategy, according to Nana Murugesan, vice president of international at Coinbase. She continued by saying that because they recognize the enormous potential and growth opportunities in the area, they are committed to making investments in and creating products specifically for the Brazilian market.
Coinbase’s Share Rises
Following the news of the expansion, it was seen that the price of Coinbase’s shares increased by 12%. Yet, it is also important to note that the stock of the particular exchange platform was seen to have increased by over 56% in less than two weeks, reaching a high of more than $83 per share, the most in six months.
This rebound might be seen as a reflection of a larger uptrend in the cryptocurrency market. When investors flocked to the digital asset amid fears of a banking crisis over the past weekend, it was reported that Bitcoin had broken the $28,000 barrier for the first time since June 2022. Other cryptocurrencies are also on the rise, like Ether, which has increased by 20% in less than two weeks.
After going through a hard time last year, where they posted fourth-quarter profits with a $2.6 billion net loss for 2022, these recent increases are a promising indication for Coinbase. Coinbase also recorded a 50% drop in overall trade volume compared to 2021 in the midst of the crypto winter. Generally, they agree that 2022 was a difficult year for the cryptocurrency markets and our transaction revenues.