Cryptocurrencies are getting widely adopted and used for payments and investment purposes worldwide. This makes the moral responsibilities for the respective countries to regulate the market in the region for safeguard of native users. Crypto regulations remain the hot topic within the space as well. Still when the Brazilian President signed a bill intended to regulate Bitcoin payments and regulatory framework it was welcomed by many.
Crypto Law Allows Bitcoin (BTC) Payments in Brazil
On Thursday, President of Brazil, Jair Bolsonaro reportedly signed a bill consisting of a complete regulatory framework regarding bitcoin trading and its use as payment in the country. After signing, the bill is now ready to pose itself as a new law which will go into effect in 180 days following the signature.
Congress has already approved the bill and did not make any changes. The newly enacted laws do not make any cryptocurrency including bitcoin as a legal tender. Rather it said earlier to consider bitcoin as a digital representation of value being used as a payment and investment.
Regulator to Decide the Journey Ahead
However, it depends on the acts of the responsible regulator to what extent that occurs. The government entities that will control the market will be chosen by the executive branch. When using bitcoin as a means of trade, the Brazilian Central Bank (BCB) is anticipated to be in charge, while the Securities and Exchange Commission (CVM) would act as the regulator. The federal tax authority (RFB), the BCB, and the CVM all assisted in the drafting of the overhaul legislation by legislators.
The situation won’t be ideal if the BCB is certified as the industry’s watchdog. There is little reason to think that the BCB will go above and above to promote increased acceptance of bitcoin as payment, even though the regulator cannot override the definition of a virtual asset set forth by the law cited above.
Central Bank President Roberto Campos Neto has frequently stated that he does not think cryptocurrencies are a great replacement for fiat payments, citing volatility as the key reason. A more significant development is that the BCB is aiming to launch the Real Digital, its own digital currency, which is slated to go live by 2024.
However, the legislation’s increased regulatory certainty encourages companies to take a closer look at the increasing payment option. Regardless of the BCB’s active sponsorship or lack thereof, this could lead to a wider acceptance of bitcoin as a form of exchange in Brazil.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
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