A Brazilian lawmaker points to introduce bitcoin as a Legal 'Payment Currency.'

A bill that seeks to regulate cryptocurrencies, including bitcoins, is expected to reach the Chamber of Deputies for debate in the next few days.

The lawmakers in Brazil wish to make it easier for people to invest in bitcoin and other cryptocurrencies by establishing a regulatory framework. This would also create scammers and hackers’ jobs challenging.

Recently the Brazilian legislature approved the draft bill 2.303/15. Originally introduced by Deputy Expedito Netto, This bill seeks to regulate digital currencies. Now Deputy Aureo Ribeiro of the Solidariedade Party has given an updated draft. The revised bill draft focuses on giving Bitcoin legal status as a “payment currency” in Brazil.

Currently, in Brazil, Bitcoin remains unregulated, and its usage in commerce is not introduced. If the new law passes, it will give Bitcoin a legal stand in the country for the very first time. 

The bill does not have any information if bitcoin would be a state-sanctioned currency in the country officially. It is not yet clear how the payment currency will be defined by the new law.

Ribeiro said in an interview for the official media of the Brazilian Chamber of Deputies, Radio Camara, that -

"We want to separate the wheat from the chaff, create regulations so that you can transact, know where you are buying, who you are trading with, and have this asset to buy a house, a car, [or] go to McDonald's to buy a hamburger. It will be a currency in the country just like it is in other countries," 

Ribeiro’s bill will soon replace the initial proposal submitted by Deputy Expedito Netto. Ribeiro further expands on Netto's draft and clarifies the specific and controversial topics. Such topics include the exemption of “rewards points” from virtual assets.

Rushali Das

CBW - External Analyst

INDIA