A Brazilian deputy has introduced a bill recognizing Bitcoin (BTC) as a new means of payment. Could Brazil be following in the footsteps of El Salvador and the Central African Republic?
Bitcoin: soon to be recognized as legal tender in Brazil?
On June 10, a Brazilian deputy introduced a bill that aims to recognize Bitcoin (BTC) as a means of payment.
Indeed, the country could see the queen of cryptocurrencies as a legal tender in the near future. In this sense, and to be a little more specific, federal deputy Paulo Martins presented a detailed legislative proposal to the members of the Brazilian National Congress.
Thus, a formulation was suggested to complement the country’s existing law:
“Cryptocurrencies, understood as digital representations of value that, 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.”
Now it is up to the Brazilian legislator to deliberate on this bill. Also, the adoption of the latter could be an important step for the country that could join the steps of El Salvador, or even the Central African Republic.
In the steps of El Salvador and the Central African Republic?
In this perspective, Brazil was not the first country to propose this type of bill. Indeed, El Salvador and the Central African Republic are the two countries that have recognized Bitcoin as a legal currency.
The adoption of this crypto-currency is also a way to attract foreign investments and/or investors. In particular, companies from the sector, such as mining for example.
Despite this, this approach can be subject to criticism or even pressure from institutions or politicians. In this sense, the International Monetary Fund (IMF) has repeatedly stressed that this adoption represents a risk for both countries.
