Brazil Passes Law To Legalize Crypto As a Payment Method

In Brazil, bitcoin can be used as a means of payment and an investment asset. The law, which secured this status for it, was signed by the country's President Jair Messias Bolsonaro.

The head of state approved the document proposed by Congress without changes. It will go into effect in 180 days from the date of its signing. The law describes bitcoin as a digital representation of value.

The Bank of Brazil is expected to be responsible for the use of the first cryptocurrency as payment. The Securities and Exchange Commission will take responsibility for the supervision of digital gold as an investment asset. Together with the country's IRS, the two agencies co-sponsored the law.

Bitcoin Magazine did not rule out that the country's central bank will not contribute to the formation of a favorable regime for the popularization of bitcoin as a means of payment.

Bank of Brazil Governor Roberto de Oliveira Campos Neto, citing mainly volatility, has repeatedly stated that he does not consider cryptocurrencies as an alternative to fiat.

The regulator has previously promised to issue CBDC in 2024 after a closed pilot program with financial institutions. According to Neto, the new payment instrument will not disrupt monetary policy and will not harm banks.