Bitcoin to soon become legal tender in Brazil as regulators approve BTC payments

A recent story claims that Brazil’s Chamber of Deputies ultimately approved a statute that governs the crypto-verse. The Senate had previously given its approval to this bill. However, since April, the Chamber of Deputies has been mute on the subject.

Regulators from all around the world have been closely examining the Bitcoin-driven business during the current bear market. However, Brazil was launching into the world of cryptocurrencies with its most recent regulatory framework.

Currently, it needs President Jair Bolsonaro’s signature to become law. The tenure of President Bolsonaro expires on December 31, 2022, it should be mentioned.

According to reports, by this approval, Bitcoin and its equivalents would be acknowledged as assets with a value that can be used for payments.

It’s anticipated that this long-awaited crypto bill would also define crypto service providers. The government will be able to protect its citizens from money laundering and cryptocurrency-related scams in this way.

The executive branch is anticipated to choose government organizations that would oversee the market in addition to passing the bill. The Central Bank of Brazil [BCB] is anticipated to assume control over the use of Bitcoin and other assets for payments.

The Brazilian Securities and Exchange Commission may be in charge of policing market activity. According to reports, the Federal Tax Authority and the aforementioned government bodies would assist the central government in creating legislation.

Will Brazil become a significant hub for cryptocurrency?

According to a recent study, only 16 million of the country’s 216 million residents were crypto owners.

Crypto ownership in the area has significantly increased over the last two years. For instance, in 2020, 4.9 percent of the nation’s population owned cryptocurrency. As previously noted, this further increased to 7.8 percent in 2021.

The country’s crypto scene was undoubtedly growing as a result of this development, and it is predicted to grow even more. Therefore, for convenience and operations, a suitable regulatory framework is necessary.

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