Brazil is moving towards crypt acceptance as a legal tender. However, it will be accompanied by a number of new regulations and oversight.
According to sites like Coinrivet, authorities from that country have introduced a bill that would allow Bitcoin to be used in all transactions, large or small. Federal Deputy Aureo Ribiero would introduce the bill to the Plenary of Chamber of Deputies within the next few days.
He stated that the asset will allow him to purchase a house and a car.
Brazil, however, is looking to tighten cryptocurrency regulations.
Brazil’s bill must pass the chamber. That vote could come as soon as this week. The bill proposes that bitcoin can be used in many forms of payments. It also includes regulations that could increase the penalties for crypto-related money laundering. The amount of money that was laundered would be doubled to one-third. These crimes would result in a longer sentence of imprisonment for these criminals, which could be up to 16 years.
It is hoped that consumers will feel more comfortable using bitcoin in everyday transactions and make it less difficult to use cryptos for fraud purposes. According to coingape.com, Panama is on track for legalizing bitcoin.
It is important to remember that these smaller countries that have adopted bitcoin and central bank digital currency (CBDCs), such as El Salvador, Nigeria, and the Bahamas, are smaller than Brazil’s GDP of $1.4 trillion. The nations at various stages of bitcoin acceptance in Brazil will be closely monitoring the situation to see if they can reduce fraud.
There seems to be some ambivalence within that country about bitcoin. According to Sherlock Communications, 48 percent of Brazilians support bitcoin adoption. This means that more than half of Brazil is not enthusiastic about bitcoin. In fact, 21 per cent are against it. This is where the challenge lies in promoting new payment options: Getting interest and trust.
There is no doubt that interest rates are high in many countries, including the United States. We surveyed over 8,000 people in a joint study between BitPay and PYMNTS. About 12% of all consumers own cryptos. This means that approximately 18% of adults are likely to use crypto for purchase.