Friday, August 12

“Cryptocurrency is collective insanity”, says Sérgio Moro’s advisor

Sérgio Moro’s economic adviser, Affonso Celso Pastore, criticized the use of cryptocurrencies by Brazilians. In a conversation with journalist Claudio Dantas from the portal O Antagonista, Affonso also spoke about the Central Bank of Brazil, an autarchy that he commanded during the period of the Military Dictatorship. When President Figueiredo was still in charge.

Another issue is about his differences with the current Minister of Economy Paulo Guedes.

What is striking is that Pastore advises Sérgio Moro at a time when the former Minister of Justice and Public Security in the government of Jair Bolsonaro launches his pre-candidacy for the presidency in 2022, for the Podemos party.

Cryptocurrency is collective insanity

In conversation over the past few days, Affonso Pastore ended up having the subject of cryptocurrencies on his radar and ended up sharing a sour position on the subject. Before talking about the technology, he defended fintechs and a regulation of the sector, which helps in granting credit to people in a more agile way.

About cryptocurrencies then, Pastore ended up being totally against the use of this technology in Brazil.

“Now about cryptocurrencies, let me tell you this, I really can’t understand what the hell people have inside their heads.”

He mentioned that he was startled when he saw cryptocurrencies being present in the Brazilian trade balance. Pastore said that he always modeled Brazil’s export and import forecasts well, but everything changed with the arrival of cryptocurrencies.

According to him, Brazil pays a lot to have cryptocurrencies in circulation, a movement that has been growing in recent months. Affonso Pastore said there are $6 billion in payments for services for processing cryptocurrencies.

“First of all, cryptocurrency is not active, it has no intrinsic value, it is simply a volatile thing, it uses up a gigantic amount of energy. I mean, for the little boys here to play at buying and selling cryptocurrency, Brazil is spending US$ 6 billion, I think that’s crazy”.

At this point, he recalled that the Central Bank of Brazil must issue electronic money and that the PIX is a step in that direction. Finally, Pastore cried out that “Cryptocurrency is a collective insanity, which costs the world a lot, from a useless energy point of view, and is costing Brazil, just at the beginning of the cryptocurrency wave, US$ 6 billion per year“.

Recurring criticism on the accounting of digital currencies in the trade balance

This Monday (22), the former Treasurer of Banco Bradesco Alfredo Menezes posted on Twitter that Bitcoin being counted as an import and not as an investment by Brazilians abroad distorts the data on the real economy.

This criticism had already been made recently, when a foreign exchange expert blamed Bitcoin for the devaluation of the Real. It is worth remembering that the Central Bank of Brazil has recognized Bitcoin in the trade balance since 2019, in response to a request from the IMF.

In a publication by Twitter, Austrian economist Fernando Ulrich explained this Monday that Bitcoin is similar to gold, as a commodity, and could not be marked as an investment.

He recalled that the IMF is monitoring this matter and may even make changes, but at the moment, another treatment by Bacen on the matter would not be correct.

“The IMF is monitoring and perhaps re-evaluating this form of accounting. But, considering the current definitions of the Balance of Payments, I cannot see another classification alternative for buying and selling cryptoactives like bitcoin.”