After El Salvador, now Brazil looks to accept Bitcoin as currency

By: |
October 07, 2021 9:46 PM

The penalty with respect to money laundering crimes with the use of cryptos as per the new bill will be imprisonment from four years to 16 years and eight months, in addition to the fine.

bitcoin vs gold which is betterThe country’s Bitcoin bill 2.303/15 was introduced in the Brazilian House of Representatives and the approval was given on September 29. Representative image

After El Salvador, Brazil is looking to be the next country in line to recognise Bitcoin as a currency. The country’s Federal Deputy Aureo Ribeiro earlier this week said that Bitcoin will soon be the currency in Brazil and Brazilians “will soon be able to buy houses, cars and even McDonald’s with Bitcoin, after approval of its law,” Brazilian crypto media portal Livecoins reported citing Ribeiro’s interview to a local media. The country’s Bitcoin bill 2.303/15 was introduced in the Brazilian House of Representatives and the approval was given on September 29. The bill will now be discussed in the Plenary of Chambers of Deputies – the lower house of the National Congress of Brazil.

The congressman said that the bill has an “innovative” text, and after its approval, several countries will copy Brazil’s regulatory model, the portal reported. “We debated a few years there to arrive at a text that recognizes this asset, which allows the transaction of this asset in our country, and which will be regulated by a government agency, because we will work with the Central Bank and the CVM, depending on how this asset will be recognized, such as real estate value or currency of daily use,” Ribeiro said.

Also read: India gets its second crypto unicorn; CoinSwitch Kuber valued at $1.9B with $260M funding

While countries El Salvador and now Brazil are recognizing Bitcoin as a legal tender, China, Turkey, Egypt, Bolivia, Indonesia, etc had banned crypto use while countries like India are likely to come up with crypto regulations soon.

“We strongly believe that Bitcoin and blockchain technology can positively revolutionize financial systems in the world including in India. With the ability to do micro transactions at scale, blockchain-enabled currencies are the way forward to boost developing economies with millions of unbanked citizens. In this context, it is almost inevitable that countries adopt Bitcoin as a legal tender as El Salvador did in September,” Vikram Subburaj, Co-Founder and CEO of Giottus Cryptocurrency Exchange told Financial Express Online.

As international adoption multiplies and Bitcoin/other cryptocurrencies becomes legal tender in multiple countries, most countries may be compelled to do trade via Bitcoin in the future, added Subburaj. The penalty with respect to money laundering crimes with the use of cryptos under the new bill will be imprisonment from four years to 16 years and eight months, in addition to the fine, according to a note in the Portuguese language published on the Brazil congressional website on September 29.

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibilitfor their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.

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