Bitcoin is the use of payment for people in Brazil
- The cryptocurrency bill is awaiting the Brazilian executive arm led by President Jair Bolsonaro to stamp their approval.
- While Brazil has not made Bitcoin legal tender like El Salvador did last year, trade between the two countries is expected to increase dramatically in the coming years.
The South American continent – led by El Salvador and Brazil – is rapidly shifting towards the Bitcoin and cryptocurrency market. The Federative Republic of Brazil – through the Chamber of Deputies – has approved the use of crypto as a form of payment. Coincidentally, the Bitcoin price and almost the entire crypto market is in the green on Wednesday. Bitcoin price has risen to an intraday high of $17k, with Ethereum up 4 percent in the past 24 hours.
A closer look at Brazil and the legalization of crypto payments
While Brazil has not made Bitcoin legal tender like El Salvador did last year, trade between the two countries is expected to increase dramatically in the coming years. Moreover, their proximity and use of Bitcoin will promote seamless trade between the two South American countries.
Brazil has just officially recognized #bitcoin as a means of payment!
— Lark Davis (@TheCryptoLark) 30 November 2022
The cryptocurrency bill is awaiting the Brazilian executive arm led by President Jair Bolsonaro to stamp their approval. Upon approval, the Brazilian Securities and Exchange Commission (CVM) will have enormous power over most crypto assets in the country. Moreover, Bitcoin and Ethereum’s combined dominance is about 53 percent of the total market capitalization. Whereby the entire altcoin industry will likely fall under the Brazilian Securities and Exchange Commission.
In accordance with Brazilian virtual asset laws, the Central Bank of Brazil (BCB) will monitor the adoption process to ensure proper tax implementation. Furthermore, Brazilians in the diaspora benefit significantly from using crypto-assets in cross-border payments.
However, the bill rejected a clause that sought to cut some state and federal taxes on the purchase of Bitcoin mining machines. Nevertheless, the Brazilian virtual assets bill intends to clearly define crypto service providers, including centralized exchanges.
Following the implosion of Terra Luna, FTX and Alameda, the Brazilian federal government intends to thoroughly investigate all crypto firms before issuing an operating license, according to the bill. For example, part of the bill states that crypto companies must exquisitely define and separate customers’ funds and the company’s capital.
The bigger picture for Bitcoin in Brazil
The cryptocurrency market has shrunk significantly in value over the past twelve months. Nevertheless, South American countries are committed to adopting Bitcoin and other virtual assets to empower local businesses. Tourism in the region is expected to increase significantly compared to previous years. Furthermore, global cryptocurrency investors are likely to visit these countries to make strategic investments.
Remember that El Salvador’s President Nayib Bukele recently announced that the country is buying 1 BTC per day during the ongoing bear market. As such, market strategists argue that the next crypto bull market will go parabolic for all virtual assets that offer real-world strategic utility.
