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Bitcoin becomes legalized for payment in Brazil

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As per emerging reports, the President of Brazil, Jair Bolsonaro has assented to a bill which legalizes Bitcoin as a means of payment in the country. The president signed the bill into law on Thursday. According to federal government official journal (DOU), the bill manifested to establish a complete regulatory framework for trading and use of bitcoin in Brazil.

Notably, the Brazilian government passed the bill into law without any modification after its passage by Congress. As revealed, Brazilian law now recognizes bitcoin as a digital representation of value. As a result of this, Bitcoin can now be used as a means of payment and as an investment asset in the South American nation.

According to the bill, a virtual asset remains a digital representation of value, negotiated or transferred electronically. Also, virtual assets serves as an instrument for payments or investment. Meanwhile, the effectiveness of the assented Bitcoin bill starts in the next few months from now. The law however does not make bitcoin or any other cryptocurrency a legal tender despite the legitimacy conferred on it.

Notably, the bill mandates selected government bodies to monitor the market. The executive arm, as revealed, enjoys the power to select those bodies. Also, the bill empowers the Central Bank of Brazil to ensure the rightful usage of Bitcoin in the country. Meanwhile, the country’s securities and exchange commission will supervise when bitcoin is used as an investment asset.

Bitcoin not a substitute for fiat payment – Brazilian President

The Brazilian President however affirmed his belief that BTC is not a considerable substitute for fiat payment. Notably, the Central Bank of Brazil intends to launch its Digital Currency. The apex bank plans to circulate digital currency identified as Real Digital in 2024.

Worth noting that the Central Bank of Brazil and securities commission in conjunction with the Federal Tax Authority helped participated in drafting the Bitcoin bill. Recall that a few weeks ago, Binbits reported that the Brazilian legislative body passed the bill seeking the legalization of Bitcoin as a means of payment. The bill intends to incorporate Bitcoin and other virtual assets into Brazil’s payment methods. Notably, it also provides for the establishment of licenses for crypto trading platforms.

As revealed, the bill became presented to the house by Federal Deputy Paulo Martins. According to Martins, the bill alters already existing Brazilian laws such as the civil procedure code. Also, it introduces some definitions and changes relating to cryptocurrency. In addition, the bill also intend to ensure the safety of users private keys.

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