With technological advancement in the global financial market, crypto assets and cryptocurrencies are increasingly helping companies and economies to enter the digital world. However, many people still confuse these two concepts, which, although related, have important differences.
"Both solutions are linked to the new era of transaction and investment decentralization, but one is not necessarily the same as the other, especially when we look at the possibilities of applications," says the CEO of thePinbank, one-stop bank provider with a complete ecosystem of financial solutions, Felipe Negri.
Main features
Basically, a crypto asset is a digital asset secured by cryptography. Among the options in this category are cryptocurrencies, but there are also alternatives such as NFTs (Non-Fungible Tokens), stablecoins, and utility tokens.
"When we talk only about crypto assets, we are discussing a more abstract idea because they do not depend on fiat currencies to determine their value," says Negri. In other words, they are assets that follow the market in a completely disconnected way from a governmental model or a specific strategy, relying much more on supply and demand, he adds.
Cryptocurrencies, on the other hand, have a value backed by real currencies, which, in turn, are guaranteed by governments. One of the main examples is BTC (Bitcoin); according to CoinMarketCap, it reached a value of over US$ 85,000 in mid-April and is increasingly becoming an accepted option by different investors and organizations.
"In the case of cryptocurrencies, which are backed by natural currencies, the supply does not occur in a disconnected manner," explains the CEO of Pinbank. "For this reason, there is a movement in the market as a whole to embrace this crypto asset, as it is a solution to simplify and optimize payments and transfers around the world," he adds.
Evolution in Brazil
In Brazil, the cryptocurrency market is active, which can be identified by the performance of the cryptocurrencies themselves. Data from the Federal Revenue reinforce this reality by revealing that these assets moved approximately R$ 248 billion between January and September 2024.
On the other hand, Negri emphasizes that there is a major challenge in the country to make the use of these alternatives clearer. "New technologies always need to be applied to solve problems, which in this case refer to the prevention of financial risks. This means that both governments need to educate the population on the subject and accelerate their regulations, as companies should create services to reduce fees and improve user experiences," he points out.
The executive also emphasizes that the development of the crypto segment can help Brazil face the "fiscal chaos". "Seeking to confront exchange rate volatility through innovation is an effective way to improve commercial operations and even investment strategies, without being at the mercy of global economic uncertainties. In other words, the market has a much greater chance of achieving sustainable growth through the digitization of processes," he concludes.
