Brazil is all set to become the latest country in Latin America to legally recognize digital currencies, with a new pro-Bitcoin bill heading to the Senate for its approval. The bill has been in the works for three years now and will regulate the day-to-day uses of digital assets. First introduced in 2019, the bill was unanimously approved by the Senate’s Economic Affairs Committee (CAE) this week.
Brazil could become the latest country in Latin America to recognize Bitcoin.
The bill was sent to the Senate plenary, and if it sails through, it will be sent to the Chamber of Deputies. After this, President Jair Bolsonaro will then sign it into law, making Brazil the latest and biggest country in Latin America to recognize Bitcoin. However, the president can also veto the bill and send it back to parliament. If signed into law, it will officially recognize cryptocurrencies as “digital representations of value that can be traded or transferred by electronic means and used to make payments or for investment purposes.”
This will allow Brazilians to make payments in Bitcoin.
If the bill is passed, it will allow Brazilians to make payments in Bitcoin, a privilege that many countries, including most recently India, have refused to grant the digital currency. India has been moving towards legalizing Bitcoin as an asset, claiming that allowing its use as a currency could destabilize the local economy.
Brazil will also recognize virtual asset service providers (VASPs), with the government issuing licenses to all Bitcoin firms. Once registered, these companies will have to abide by a strict code of conduct that includes being required to notify the Brazilian Financial Activities Control Council in case of a transaction suspected of money laundering.
