After the approval of the crypto bill by the Brazilian Senate last April, it is now the turn of the Chamber of Deputies (Câmara dos Deputados), to vote the said law. This Tuesday, November 29, the Brazilian deputies have voted this crypto law, it only lacks the signature of the president for Brazil to use Bitcoin as a means of payment.
Parliament votes to adopt bitcoin
The Brazilian Chamber of Deputies voted this Tuesday in Brasilia, a law recognizing bitcoin and other cryptocurrencies as a digital payment solution in the country, under the supervision of the Central Bank.
This bill, passed in April 2022 by the Senate, passed the Chamber of Deputies this Tuesday, November 29. After these two steps, this “pro crypto” law is about to be implemented in Brazil under the number PL 4401/2021. All that’s missing is the president’s signature for Bitcoin and cryptocurrency payments to have legal status in the country.
This law will empower the executive branch and will encourage it to oversee and regulate the crypto market throughout the country. Thus, transactions in cryptocurrencies for the payment of goods and services will be under the supervision of the Central Bank of Brazil and the Securities and Exchange Commission. The latter will be able to intervene in the use of bitcoin as an investment asset.
This law will also include the regulation of crypto service providers such as exchanges. These will have to comply with specific rules to be allowed to operate in Brazil.
Is Brazil doing what El Salvador did before it?
The 2021 poll conducted by Brazilian marketing agency Sherlock, found that 48% of Brazilians wanted Bitcoin as a national currency.
The bill on the adoption of cryptos in Brazil, did not grant Bitcoin the right to be a national currency. In any case, the Brazilian law is limited to payments for goods and services, which differentiates it from the one adopted in El Salvador.
Recall that in El Salvador, Bitcoin has been legal tender alongside the US dollar since September 7, 2021. In Brazil, Bitcoin and digital currencies will not be able to have the same value as an official currency.
Bitcoin and cryptocurrencies are currently going through a difficult period, but this event in Brazil is a great victory that proves that interest in them remains very strong! Are we approaching hyper-bitcoinization? Most likely, despite the ECB’s criticism!
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.