Cryptocurrency as Payment Method now Legal in Brazil

Cryptocurrencies have the potential to become promising drivers of financial stability in a developing country’s economy.

Recently, Brazil has made a move to legalize cryptocurrency as a payment method.

Brazil approves bill regulating use of Bitcoin as payment

The Chamber of Deputies, a federal legislative body and the lower house of the National Congress of Brazil, has approved a law that legalizes cryptocurrencies as a mode of payment all over the nation. The move is a big leap forward to the adoption of digital currencies and the expansion of the nation’s financial ecosystem.

The new rules indicate that the country will recognize Bitcoin as a digital version of value that can be used as a means of payment as well as an investment asset in the South American country.

The bill applies widely to a sector that calls it as “virtual assets”, and now only awaits the President’s signature before it becomes law.

Note that this bill does not make Bitcoin or any other cryptocurrency legal tender in the country. Instead, the bill shall include digital currencies and air mileage programs and classify them under payment methods which are in turn supervised by the central bank.

Presently, Brazil holds the most cryptocurrency ETFs in Latin America. Its citizens were seen to prefer to trade with virtual currencies such as Bitcoin rather than invest in the stock market. Most of the banks and brokers in the country offer the opportunity to invest in cryptocurrency and similar services such as custody and token offerings.