FINANCIAL SYSTEM AND FREE TRADE IN THE 21ST CENTURY: NOTES ON THE ADVENT OF CRYPTOCURRENCIES, DECENTRALIZED FINANCE, AND THE CHALLENGE OF BRAZILIAN PUBLIC SECURITY IN A SCENARIO OF GLOBAL MARKET EXPANSION

Abstract

The expansion of global markets in the 21st century, a result of globalization, has enabled the breaking of borders through computational technologies, software, and a re-interpretation of the current financial system. After the financial collapse of 2008, there was the birth of a new form of currency, now not physical, but digital, a revolutionary crypto asset known as Bitcoin, which in 2021 exceeded 1 trillion in market value, trailing only behind giants such as Apple and others. The crypto asset has spurred debates on market freedom, bringing to light the possibility of conducting economic transactions without interference from financial institutions. Furthermore, outlining the difficulty of understanding the subject, there is the growing use of decentralized finance, which uses monetary services without centralized intermediaries, constituting true loan platforms and brokers, positioning itself as an alternative to the traditional market.The key point for governments’ acceptance or rejection of cryptocurrencies is related to the premise that digital currencies can be tools for committing crimes, especially “laundering money”. In Brazil, there was no legislation dealing with the subject, however, in 2022 law no. 14,478 was enacted, seeking to regulate aspects related to crypto assets, including adding provisions in criminal legislation. Thus, a dichotomy is observed in the current scenario involving cryptocurrencies: on one hand, there is a trend of regulation, restricting financial freedom; and, on the other, expansion of free trade and economic freedom. In both cases, there is a need for specialization of authorities, in order to enable the use of digital currency in cyberspace, as well as to prevent financial fraud capable of distorting the objective of crypto assets.