- They recognize Bitcoin as a digital representation of value
- Can be legally used as a means of payment and as an investment asset
- Does not convert bitcoin or any cryptocurrency into legal tender in the country
- Still needs the president’s signature to become law
- Crypto service providers must be registered
The bill charges the executive branch with the selection of government agencies to oversee the market. The expectation is that the Central Bank of Brazil (BCB) will be in charge when Bitcoin is used as a payment, while the country’s securities and exchange commission (CVM) will be the watchdog when it is used as an investment asset.
Both the BCB (Brazilian Central Bank) and the CVM (Securities and Exchange Commission), – along with the federal tax authority RFB (Brazilian Federal Reserve), helped legislators draft the reform legislation.
The advance on the digital real
The President of the Central Bank of Brazil, Roberto Campos Neto, recently introduced the digital real under the concept of “open finance” and proposed integration with the existing payment system.
Campos Neto spoke of the new digital asset of the South American giant and slipped that it would be integrated into traditional financial structures and institutions -such as the PIX payment network- and decentralized ones. In addition, the president of the Central Bank also pointed out that he will seek to link the digital real to the main stablecoins.
The official presented an application model, which will house the different use cases of the digital reality in one place. “This is basically a preview of what this integration I’m talking about will be. Instead of having several apps on your cell phone, from several banks, you will have some kind of integrator”, he pointed out.
On the other hand, Campos Neto stressed that “the digital real is a bridge to the DeFi environment” and singled out Banco do Brasil from other organizations in the region. “We bring the digital world to the banking system. Several other central banks are doing the opposite. In fact, they are taking digital out of banking”, released the Brazilian. However, despite his criticism, evidence worldwide indicates that more and more central banks are exploring the digital area.
Source: Ambito
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