Brazil’s lawmakers have passed legislation recognizing Bitcoin as a digital currency that can be used for payments and investment in the South American country.
The news broke on the night of Tuesday, November 29th, 2022, in Brasilia, the country’s capital and seat of the federal government.
However, it is essential to note that the bill requires presidential consent before being fully implemented. Furthermore, despite the legislation permitting the use of bitcoin as a means of exchange and investment, it is not recognized as legal tender in the country.
Various government parastatals have been tasked with overseeing the use of Bitcoin in the country. The Brazilian central bank is saddled with regulating Bitcoin when it is used as a payment method. The Brazilian Securities and Exchange Commission (SEC) is in charge of Bitcoin regulation when it is used as an investment asset.
The new bill includes cryptocurrency exchanges and other organizations in the crypto industry. The bill states that only crypto exchanges with written permission from the federal government are permitted to operate in the country.
Cryptocurrencies are becoming increasingly popular in Brazil. According to Receita Federal, Brazil’s tax authority, locals traded $11.4 billion in stablecoins between January and November 2021, nearly tripling the amount traded in 2020. Approximately $10.8 billion worth of stablecoins were traded in 2017.
Brazilians have been observed to prefer Tether (USDT), having spent approximately $9.7 billion trading the stablecoin between January and November 2021. Other stablecoin transactions conducted by the country’s residents include $1.6 billion in USDC, $12.9 million in DAI, and $5.6 million in TrueUSD.
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