Brazil recognizes bitcoin as legal tender and investment asset

The relevant law was signed by the country’s President Jair Bolsonaro

23.12.2022 - 08:15

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What’s new? On December 21, Brazilian President Jair Bolsonaro signed a law proposed by Congress to legalize bitcoin as a means of payment and investment asset. The law will take effect 180 days after it is signed and will allow 214 million Brazilian citizens to legally use the first cryptocurrency.

Link to the document

What else is known? According to the law passed, BTC is defined as a digital representation of value. The country’s Revenue Authority, the Central Bank, and the Securities and Exchange Commission were involved in the development of the document. It is known that two agencies will regulate bitcoin in the country. Bank of Brazil will be responsible for the use of cryptocurrency as a means of payment, the Securities and Exchange Commission will oversee the use of BTC as an investment asset.

The signing of the law made Brazil the third country in the world to legalize bitcoin as a means of payment. Earlier, the authorities of El Salvador and the Central African Republictook this step.

In April, the Brazilian Senate passed a bill to regulate cryptocurrencies, which became the basis for the creation of a regulatory framework for the crypto industry in the country. And in July, Rio de Janeiro authorities announced plans to buy bitcoin for the city treasury to make the city the main cryptocurrency hub of Brazil.

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