Brazil Lawmakers OK Crypto as Payment Method

Lawmakers in Brazil have approved a bill making cryptocurrency a legal payment method.

This week, the country’s legislative body voted on a regulatory framework that legalizes the use of cryptocurrencies as a payment method within the country, according to published reports. 

This legislation comes as crypto advocates in Brazil have been calling for more oversight in the wake of the collapse of the FTX crypto exchange.

The new bill also creates a new category of crime, “fraud involving virtual assets,” and mandates the creation of a “virtual service provider” license.

In addition, the bill says crypto assets considered securities will be regulated by the Brazilian Securities and Exchange Commission (CVM), while other digital assets will be governed by another body appointed by the executive branch, such as the country’s central bank.

The passage of the bill — which still needs the signature of the country’s president — does not make crypto legal tender in Brazil but does move the country closer to a wider embrace of digital currencies.

Last month, the Brazilian digital bank Nubank announced the release of its cryptocurrency — called “Nucoin” — saying it hoped to “further democratize new technologies such as blockchain and web3.”

This year also saw Latin American eCommerce giant MercadoLibre debut its cryptocurrency in Brazil, dubbed MercadoCoin, which customers as cash back when buying goods on the MercadoLibre eCommerce platform. 

PYMNTS in September noted some Latin American consumers had begun turning to cryptocurrency as inflation rose in the region, using it to access credit borrowing money from traditional banks becomes more difficult.

Meanwhile, El Salvador was the first country in the world to make bitcoin legal tender and has recently begun considering a bill that would regulate digital securities. But as PYMNTS reported last month, many residents in El Salvador say they don’t consider the experiment a success.

Two-thirds of Salvadorans say President Nayib Bukele’s bitcoin policy has been a failure and more than 75% have never used it.

Fewer than 17% of residents said they consider the initiative a success, according to a survey by the University Institute of Public Opinion of the Jesuit Central American University. That makes it “the most unpopular measure of the Nayib Bukele government,” University Rector Andreu said.