In Brazil, bitcoin was recognized as a means of payment

In Brazil, bitcoin can be used as a means of payment and an investment asset. The law that secured this status for him was signed by the country's president, Jair Bolsonaro.

The Head of State approved the document proposed by the Congress without changes. It will enter into force 180 days after signing. The law describes bitcoin as a digital representation of value.

It is expected that the Bank of Brazil will be responsible for using the first cryptocurrency as a payment. The Securities and Exchange Commission will take responsibility for overseeing digital gold as an investment asset. Together with the Tax Administration of the country, both departments co-authored the law.

Bitcoin Magazine did not rule out that the Central Bank of the country will not contribute to the formation of a favorable regime for the popularization of bitcoin as a means of payment.

The chairman of the Bank of Brazil, Roberto Campos Neto, referring mainly to volatility, has repeatedly stated that he does not consider cryptocurrencies as an alternative to fiat.

Earlier, the regulator promised to issue a CBDC in 2024 after a closed pilot program with financial institutions. According to Neto, the new means of payment will not violate monetary policy and will not harm banks.

Recall that before Brazil, bitcoin as a means of payment was approved by the authorities of El Salvador and the Central African Republic.