A new crypto law is about to be passed in Brazil. Is the largest economy in South America changing Bitcoin to a legal currency?
A radio interview with the Brazilian Federal MP Aureo Ribeiro made the rumor mill run hot in the past few days. Because the foreign press derived from Ribeiro’s statements that a planned crypto law will make Bitcoin the national currency in Brazil. But the news is not that bullish.
First the facts. Indeed, on September 29th, Ribeiro indicated that his country would get a new crypto law. At the end of September, a drafted proposal passed the responsible technical committee, and the Chamber of Deputies will vote in the next few days. According to Ribeiro, the crypto community has every reason to be optimistic, even the government supported the draft. But what exactly is in the law and what are the future visions of the Bitcoin disciple Ribeiro?
Law to tighten crypto regulation
At least the Brazilian crypto journalist Saori Honorato called via Twitter in this case, to make a clearer distinction between wishful thinking and reality. Because numerous foreign news portals concluded from Ribereio’s comment that Brazil will shortly follow El Salvador in terms of bitcoin adaptation. The MP said:
We want to separate the wheat from the chaff, we want to create regulations so that you can do business, so that you know what you are buying, so that you know who you are dealing with, and so that you have this wealth, for a house or to buy a car to go to McDonald’s and get a hamburger and so it will be currency in this country, just as it has been in other countries.
However, according to Honorato, the facts are decidedly different. The proposed law doesn’t even mention Bitcoin and is primarily aimed at providing a better regulatory framework for cryptocurrencies. Measures such as stricter penalties for money laundering and mandatory registration for exchanges are intended to increase security and attract foreign investors to the Brazilian crypto industry. Honorato therefore sees the law as progress. Simultaneously make it clear:
First of all, the bill does NOT mention that Bitcoin will become legal tender in Brazil. This bill has been in development since 2015 and giving Bitcoin legal tender status is something that has never been considered in Brazil.
Brazil still in Bitcoin fever
Even if the rulers are not working on legalizing the number one cryptocurrency, the citizens of the largest state in South America are very interested in this. A study by the PR agency Sherlock Communications came to the conclusion in September that 48 percent of inflation-plagued Brazilians are in favor of a Bitcoin adaptation comparable to El Salvador. This is the highest approval rating of all the South American countries examined in the survey.