Bitcoin Payment Paving in Brazil Following the Bill 

• In 2019, Brazil set a record by trading 100,000 bitcoins in one day in Latin America. 

According to recent reports, the Chamber of Deputies in Brazil has approved a bill on the trading and use of cryptocurrency in the country. However, deputies approved it, and it is yet to be signed by President Jair Bolsonaro.

The bill would apply to the “virtual asset” sector and mandate the creation of a “virtual services provider” licence, which must be requested by companies such as exchanges and other crypto firms.

The bill will apply to legal entities that exchange virtual currency for local or foreign currencies, exchange, transfer virtual assets or engage in financial services related to virtual asset issuers or sellers.

While the bill does not recognize bitcoin or any other cryptocurrency as legal tender, it will recognize bitcoin and other cryptos as valuable assets. It can be traded or exchanged within the country without any limitations. 

The bill’s main objective is to regulate the establishment and operation of bitcoin service providers in Brazil and to recognize them as entities that provide cryptocurrency trading transfer custody, administration or sale on behalf of third parties. 

It creates a new cheating offence involving virtual assets, which can be punished with a jail term of two to six years and a fine.

It is also noted that the Central Bank of Brazil may be the supervisor of the payment methods, and the Securities and Exchange Commission (CVM) will act as a watchdog for all these payment methods.

Earlier on November 21, 2022, TheCoinRepublic reported that, In South America, Brazil is the nation that provides the largest digital market platform for trading the popular cryptocurrency Bitcoin. In 2019, the country set a record by trading 100,000 bitcoins in one day in Latin America. 

The number of investors utilising digital assets increased from 794,976 in June to 1.33 million in July. The number of companies holding crypto assets showed a growth rate of 6.1%. There were 11,360 holders in June, 11,797 in July, and 12,053 in August. Recently, companies in Brazil created a record by purchasing more than 12,000 crypto assets within August 2022.

The first cryptocurrency, bitcoin, was introduced in 2009 by an anonymous person, Satoshi Nakamoto, and following the development of bitcoin, many other developers began developing their own cryptocurrencies.

In the present era, cryptocurrencies have gained popularity globally. However, many have still not approved crypto as legal tender, although many have banned crypto usage in the country.

El Salvador is the only country to have adopted bitcoin as legal tender and introduced bitcoin into the mainstream financial system; There are about 2,381 bitcoins in the country.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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