Brazil is not immediately following El Salvador in converting bitcoin (BTC) into legal tender, but it is not far off. In the huge South American country last night was one bill approved that legalizes cryptocurrencies as a means of payment. An important step for the country where crypto is already very popular.
Crypto and airline miles
The Brazilian House of Representatives has approved a bill that includes crypto as a valid means of payment. The document states that both virtual currencies and airline miles are now valid means of payment.
The law, which has already been passed, only needs the signature of the President of the Republic to become active. Note: The new law makes it legal to pay for goods and services with crypto, but does not make it legal tender.
We speak of legal tender if a form of money has been standardized by a government for payments by citizens. You should think of fines and taxes. A means of payment that the government can enforce wider use in society.
Brazil and crypto
Incidentally, this is not Brazil’s first positive achievement in the field of crypto. The country is also the Latin American country with the most active crypto ETFs. Furthermore, most of Brazil’s major banks and brokers also offer the opportunity to invest in crypto.
Even Itaú, one of the largest private banks in the country, is currently working on the ability to tokenize assets. For example, you should think of pouring real estate and other forms of investments into blockchain tokens.
Brazil’s new crypto law does not include any plans for a central bank digital currency (CBDC). This is striking, given that the country is also making significant strides on that front. This year, for example, is Brazil started with pilots to test the new digital currency. The goal is to launch the coin in 2024.