All members of the Chamber of Deputies will soon discuss the initiative that Aureo Ribeiro introduced. The official recognition of cryptocurrencies as a form of payment will favor the prevention of financial crimes.
Brazilian deputy Aureo Ribeiro introduced a bill for the official agencies of his country to recognize payments with cryptocurrencies. That would allow Bitcoin (BTC) to become a payment currency, which would attract investment and help people make transactions with confidence.
The initiative of the legislator proposes the regulation of crypto assets, which he defines as digital securities that people can use for paying or investing. The deputy says that this will help regulate a market that, despite existing in practice, the Brazilian laws do not recognize.
That measure would also favor the prevention of financial crimes related to cryptocurrencies in Brazil. Those who commit fraud such as money laundering will face penalties of around four years in prison and fines of two-thirds of the money laundered.
Ribeiro said that regulation by a government agency would allow cryptocurrencies to enter a legal framework that protects investors. He stated that they should work together with the Central Bank and the Securities and Exchange Commission to determine whether crypto assets are securities or currencies.
One of the committees of the Brazilian Chamber of Deputies already approved the deputy’s project on September 29th. Therefore, it will only be necessary to wait for it to receive treatment from all the members of the Chamber. Then, they will vote for the initiative, which will go to the Senate for a new final vote if it receives approval.
Brazil Will Not Be at the Same Level as El Salvador Regarding Bitcoin Adoption
The approval of Aureo Ribeiro’s bill would mean that the Government of Brazil has recognized Bitcoin officially. However, its approval as a payment method does not mean that it is legal tender, as in El Salvador.
Although Ribeiro has said that Bitcoin could be legal tender in Brazil in 2021, that is not entirely true. It is an advance in regulating crypto assets in the South American country, but it is not the same as El Salvador legislated.
Brazilian businesses do not have to accept cryptocurrencies as compensation for the goods and services they offer. Similarly, the State does not have to guarantee access to them, as happened in the Central American nation. The latter installed the Chivo wallet and Bitcoin ATMs to help citizens use the cryptocurrency.
That will be something similar to what Cuba recently did, recognizing cryptocurrencies as a form of payment. Those regulations also license crypto asset service providers operating on that island.
Another case of current legislation concerning BTC is Ukraine, but nobody can pay with cryptocurrencies there. However, the State legally recognizes them as assets to prevent scams and regulate the market to attract investment.
El Salvador, Cuba, and Brazil are just three examples of the interest from governments in the use of cryptocurrencies. It is just a matter of time before most countries recognize Bitcoin as an official form of payment.
By Willmen Blanco
