Mineral resources (notably, oil and iron ore) constitute 23% of Brazilian external trade. The rest of export is machineries and such agricultural products as soybeans and sugar cane, which go to the neighboring states. As world's commodity market continues to stagnates it drugs with it the whole Brazilian economy. As the result, country's GDP growth rate has already stayed under zero for several years in a row.
Brazil, with its 200 million population and one of the largest numbers of SME in the World, provides a plethora of business opportunities for high-tech entrepreneurs. At the same time, depressed economy, high unemployment and cumbersome legal regulations have prevented local startup ecosystem from growing to its real potential.
Bitcoin is not an official currency in Brazil. However, in 2013 Brazil enacted a law which lists the principles that must be observed by the payment arrangements and institutions. Cryptocurrencies are not in contradiction with those principles. Therefore, we may assume that not only Bitcoin and other cryptos are technically legal in the country, but also that the mid-term outlook for Bitcoin is positive in Brazil.
Business Notes for Startups Founders:
political climate: indifferent;
economic climate: not friendly;
regions to focus: locally;
industries to focus: many;
major limitations: stagnating economy (GDP growth rate stays under 0% for two years), hight unemployment rate (above 12%), high central bank key rate (above 9%);
stimulus: low mid-income consumers (per-capita about $10000), fixed Internet penetration rate is above 60%;
opportunities: to build an e-business aimed at young users of mobile Internet in the variety of high-tech sectors;
Cryptocurrencies and ICOs (outlook): legal (positive).
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