Insights

Brazil Does Not Follow EL Salvador’s lead

The approval of recent Bitcoin legislation seen in Brazil’s Chamber of Deputies’ Special Committee falsely gave Bitcoin advocates the impression that the country would follow El Salvador’s lead and make bitcoin a legal tender in Brazil. Several news outlets, including Yahoo Finance and Investing.com, expanded the rumor to a wider audience all wrongly presenting false hopes that BTC would be adopted as a legal currency in Brazil.

That is not true. The bill does not mention anything about legal tender of the crypto currency, rather the Central Bank of Brazil (BCB) governor Roberto Campos Neto has repeatedly said making bitcoin legal tender in the country is not on his agenda at all.The bill (PL 2303/15) does not seek to make bitcoin legal tender. What it tries to do is increase investor protection through stricter regulation on companies who are getting entangled with “virtual assets,” either by offering trading or custody solutions according to the bill.

Leave a Reply

Your email address will not be published.