A presidential candidate in Brazil has pledged to legalized cryptocurrency in the country if elected. He revealed this through his Twitter handle on the 7th of August, as he affirmed the local currency of the nation remains the national currency of the country as a legal tender for transactions, but cryptocurrency will obtain the status of foreign fiat currency like the dollar.
Presidential Candidate In Brazil Pledges To Legalize Cryptocurrency If Elected
Joao Amoedo, a presidential candidate in Brazil, has made a promise even as the nation grapples with the status of cryptocurrency in the country. He made the details of his opinion on the legal standing to cryptocurrency.
As translated from Portuguese to English he states,
Ainda é difícil sabermos qual será o futuro do Bitcoin e de outras criptomoedas. Porém, o mais interessante é a tecnologia por trás, o Blockchain. Esse protocolo tem capacidade de gerar maior segurança, transparência e descentralização tanto no setor privado como no setor publico
— João Amoêdo (@joaoamoedonovo) December 7, 2017
“It must be made clear that the country [Brazil] has only one national currency, the currency which is legal tender, that is to say, the currency which the persons are obliged to accept as the real currency (…) Also, there are restrictions on the use of the US Dollar for payments and as an account currency, which should be the same for any other foreign currency, including cryptocurrency.”
As he planned to have it, the cryptocurrency will have a status similar to foreign fiat currency in Brazil, just like US dollar in the country. He envisages to have it as an acceptable instrument for conducting a transaction in the country with proper regulations.
Cryptocurrency in Brazil
As a presidential candidate plans to have cryptocurrencies legalized, measures are already in place to have it authorized in Brazil is yet to reach a conclusive end.
To aid the processes of its legality with the appropriate authorities, The Brazilian Association of Cryptocurrencies and Blockchain (ABCB) was launched in April 2018, as to smoothen their negotiation with the government.
Likewise in Brazil, though the legal status and regulation process is still underway, there has been a massive adoption of cryptocurrency in the country, as many of its citizens have invested in it. In 2016 a volume of $160 million worth of Bitcoin transactions was conducted, while last year, 2017, it rose to around $2.4 billion.
In 2015 there was a spat between financial institutions and bitcoin-based trading platforms as many cryptocurrency exchange accounts with banks were closed down. However, there has been reversal now, as the crypto community looks forward to the legal adoption of cryptocurrencies into its stock exchange, just like Japan adopted of recent.