A Brazilian legislator introduces legislation to recognize Bitcoin (BTC) as a new form of payment. Could Brazil be following El Salvador and the Central African Republic’s lead?
Bitcoin: will it soon be accepted as legal tender in Brazil?
On June 10, a Brazilian legislator submitted legislation to recognize Bitcoin (BTC) as a form of payment.
Indeed, the country may soon witness the queen of cryptocurrencies as legal cash. In this regard, and to be more particular, federal deputy Paulo Martins presented a thorough legislative proposal to members of Brazil’s National Congress.
As a result, the following formulation was proposed to supplement the country’s current law:
“Cryptocurrencies, understood as digital representations of value which, not being money, with their own unit of measurement, are exchanged in the context of distributed ledger technologies and used as a financial asset, a means of exchange or payment, an instrument of access to goods and services or an investment.”
It is now up to the Brazilian legislature to consider this bill. Furthermore, acceptance of the latter may be a significant step for the country, which could follow in the footsteps of El Salvador or possibly the Central African Republic.
Are we following in the footsteps of El Salvador and the Central African Republic?
In this regard, Brazil was not the first country to introduce such legislation. Indeed, El Salvador and the Central African Republic are the only two nations that have legalized Bitcoin.
Adoption of this cryptocurrency is also a method of attracting foreign investment and/or investors. Companies in particular from the sector, such as mining.
Regardless, this strategy may face criticism, including pressure from institutions or politicians. The International Monetary Fund (IMF) has frequently stated that its adoption poses a danger to both nations.
