While Brazil has not made Bitcoin (BTC) legal tender like El Salvador did last year, it has passed a law that legalises crypto payments nationwide.
The Brazilian Chamber of Deputies, a federal legislative body, has approved a regulatory framework that authorises using cryptocurrencies as a payment method within the country. While this is a significant step forward for crypto in Brazil, the law still requires the president’s signature to become effective.
Breaking news: #Bitcoin is now officially recognized as a means of payment in Brazil 🇧🇷
The bill was approved today, and now the President’s signature is the last needed step before it becomes law ✍️
Full coverage on my latest for Bitcoin Magazine:https://t.co/E6shHjS7LL
— Namcios (@namcios) November 30, 2022
The bill does not make any cryptocurrencies legal tender in the country. However, digital currencies and air mileage programs will be included in the bill’s definition of payment methods regulated by the central bank.
After a bill becomes law, the executive branch of the government must determine which office will be responsible for its oversight. Tokens considered securities would continue to fall under the Brazilian Securities and Exchange Commission’s purview (CVM).
In addition to designating crypto as a payment method, the law permits the issuance of licenses for crypto exchange platforms and third-party custody and management of crypto. To prevent a repeat of the FTX collapse, the law will require exchanges to make a clear distinction between company and user funds.
In June, a similar proposal was issued to allow Brazilians to use crypto as a payment method and to prevent courts from seizing their private keys. The proposal intends to make crypto assets a medium of exchange and an “instrument of access” to goods, services, and investments.
Thiago César, CEO of Transfero Group, a company with close ties to the Brazilian crypto ecosystem, says that while the FTX collapse has affected many sectors within the crypto space, it will not impact Brazilians’ use of crypto in their daily lives.
