Brazil's lower house of parliament has given the green light to a cryptocurrency bill that has been under discussion for 7 years. The law only needs to be signed by the country's current president, Jair Bolsonaro.
The new bill approved by the Brazilian Chamber of Deputies legalizes the use of Bitcoin as a means of payment in the Latin American country.
Aureo Ribeiro, congressman, businessman and main author of the crypto bill PL 4401/2021, Indian on Twitter that the country is moving towards creating an increasingly secure and attractive cryptocurrency market.
With the approval of this bill, Brazil recognizes Bitcoin as a form of digital money or, a digital representation of value, which can be used within its territory as a means of exchange or payment for the purchase of products, goods and services. Likewise, the country is also recognizing Bitcoin as an alternative investment asset.
However, the crypto bill PL 4401 / 2021 It also imposes new oversight and compliance rules for cryptocurrency companies. Yahoo Finance reported that the new law requires cryptocurrency platforms operating in the country to have a physical headquarters in Brazil, and stipulates that the use of Bitcoin as a means of payment and exchange of value will be regulated by the Central Bank of Brazil, while the use of the cryptocurrency as an investment asset will be overseen by the Securities and Exchange Commission (CVM), the country’s securities market authority.
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The development of cryptocurrencies in Brazil
Brazil has emerged as one of the most vibrant and promising economies for the development of cryptocurrencies. Since last year, the Latin American nation has been advancing in the adoption of the crypto industry, driving the new digital economy within its territories.
Brazilian lawmakers have given the green light to several cryptocurrency exchange-traded funds, or ETFs, in the country, to make it easier for investors to access this new class of digital asset.
Brazil also approved Latin America's first carbon-neutral Bitcoin ETF and launched a Special investigative unit focused on cryptocurrenciesThrough this research unit, Brazil has been coordinating efforts to promote the development and financial and technological innovation of cryptoassets.
On the other hand, the Rio de Janeiro city council has focused on turning the city into the crypto capital of the country. In fact, in July of this year, Rio’s city hall began promoting the use of Bitcoin as a means of payment for local taxes and announced a campaign to boost local art and culture through NFTs. Rio de Janeiro also announced a plan to invest 1% of its municipal treasury in Bitcoin.
The Latin American country has also been a pioneer in the adoption of blockchain technology at the government level. Last May, the Brazilian government launched a new blockchain called RBB, focused on minimizing levels of corruption by improving the delivery of public services and offering better traceability of public spending.
This blockchain network was launched in collaboration with the Uniam Court of Accounts (TCU) and the Brazilian Development Bank (BNDES).
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