Fantastic news is coming to us from Brazil. As it turns out, the Chamber of Deputies there has passed a law legalizing the use of cryptocurrencies as a payment method.
Brazil paves the way for mass adoption of Bitcoin
The use of cryptocurrencies as a payment method is becoming increasingly common. By far the people of El Salvador, for whom Bitcoin is now legal tender, know the most about it. This country from Central America, boasts a population of 6.5 million people. Certainly each of them, to a greater or lesser extent, is aware of the progressive adoption. Admittedly, the solution that is currently being adopted in Brazil differs from the Salvadoran model, but given that we are talking about a population of 217.2 million, it is uniquely significant.
Brazil’s Chamber of Deputies has performed a landmark act. It has passed a legislative framework that will finalize the legalization of the use of cryptocurrencies as a payment method. However, in order for the law to be fully enacted, it must be approved by the executive branch, which is the country’s president.
The upshot is that no specific cryptocurrency will become legal tender in Brazil. Instead, the law takes virtual assets into account and defines their use, while giving the central bank the ability to oversee them.
Brazil is cautiously but firmly entering the cryptocurrency segment
Brazil seems quite determined in terms of the steps it is taking, for domestic adoption of cryptocurrencies. Nonetheless, lawmakers have announced that tokens, which will be considered securities, will still be under the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).
In addition, the new document also provides the possibility of granting licenses to cryptocurrency exchange platforms. Similar ones will need to be obtained, for crypto storage and management. It will also be necessary for exchanges to distinguish between proprietary funds and those belonging to users. Given the recent events related to the FTX exchange, it can be assumed that Brazilian politicians are quick to learn from current events and perfectly counteract them.
Instant transition from words to deeds
It appears that local lawmakers are doing their best to translate their plans into action as quickly as possible. In doing so, they are exercising exceptional diligence and care for the consumer. In June of this year, a proposal was issued for such a law to be drafted. Meanwhile, despite the market price turmoil, it stands at the threshold of final implementation after a few months. Its goal is very clear – cryptocurrencies are to become a means of exchange, as well as a way to access goods, services, as well as investments.