The use of cryptocurrencies in Brazil improves the country’s logistics, says research

A recent study analyzing Brazil’s logistics sector estimates that the country should grow at an annual rate of 9.51% through the year 2027. To achieve this, the use of cryptocurrencies and blockchain technology could play an important role in relationship advertising.

The study, published by TechNavio, a company that analyzes different sectors around the world, indicates that Brazil could grow by 11 billion reais over the period.

One of the focuses in the growth of local commerce in the country depends on the e-commerce and 3PL services sector.

Research reveals a growth trend in logistics in Brazil with better access to cryptocurrencies

The researchers studied data from several years, taking the year 2022 as the base, and 2023 as the estimated year. Among the reasons that slowed the country’s economic activity, the pandemic was the biggest problem, according to the researchers.

But the situation, which weakened Brazil’s currency, also opened the opportunity for the country’s companies to export their products and services. The research also shows that Brazil is the largest logistics hub in Latin America.

With strong participation in the automotive market production chain, data indicates that the Brazilian market will grow tremendously.

And the main growth trend is the use of blockchain technology in the production chain. Moreover, the researchers point out that the use of cryptocurrencies in their supply chain solutions further stimulates the Brazilian logistics market.

“In supply chain management, especially logistics, blockchain technology helps develop a cost-effective and effective supply chain process. To increase efficiency and data security in the supply chain, third-party logistics providers have started using cryptocurrencies in their supply chain solutions. The introduction of blockchain technology in the logistics sector will positively impact the growth of the Brazilian third-party logistics (3PL) market during the forecast period.

Bad roads continue to hamper the country’s economic growth

The only barrier that could hinder Brazil’s growth in the logistics sector is its poor highways and high associated costs. The researchers point out that poor road conditions affect vehicle maintenance, causing “negatively impact the competitive position of Brazilian products around the world“.

Moreover, analysts believe that the underdeveloped railway network further worsens the overall situation in Brazil. With 140 pages, the complete study is available for purchase for those interested in logistics.

Source: Live Coins