The Brazilian Senate has enacted a measure regulating the country’s cryptocurrency business. The objective is to develop regulations to govern asset trading, assure consumer protection, and combat unlawful behaviour in that arena.
Additionally, the Brazilian cryptocurrency bill contains consumer protection standards, as well as steps to combat money laundering and other illicit activities, such as fraudulent exchange management, financing of terrorism, and the development of mass destruction weapons.
Senators anticipate that non-fungible tokens (NFTs) would be handled in a separate proposal following the passage of the cryptocurrency regulations. The bill will be passed into law after the Lower House of Congress votes and subsequently signed by the president.
According to data published earlier this month by cryptocurrency exchange Gemini, Brazil and Indonesia top the globe in terms of crypto adoption, with 41% of respondents in both countries indicating they possess cryptocurrency, this is a high number when compared with 20% possession ratio in the United States and 18% in the United Kingdom.
Another effort in the digital currency field happening in Brazil is the creation of the Brazilian real’s digital counterpart. Earlier this month, Roberto Campos Neto, president of the country’s Central Bank, stated that the Real Digital initiative is on schedule to begin awarding prizes by the end of 2022.
A guideline has been established in the previous year which will guide the country’s efforts to launch its Central Bank Digital Currency (CBDC). The guidelines have a comprehensive
approach that considers both the benefits and hazards associated with establishing a digital real, including legal factors and issues of cyber security.
The recommendations place a premium on the potential for new market offers based on technologies such as smart contracts, the internet of things (IoT), and programmable money. Additionally, the digital real may be utilised in retail payments, enabling consumers to conduct online transactions and perhaps make payments offline. The dissemination of the digital real will be handled by the National Financial System and the Brazilian Payments System just like the physical currency.
The debut of the digital real is one of the efforts of the Brazilian central bank to modernise the payment sector in the country. This initiative began last year in November starting with the adoption of Open Finance and the launch of fast payment.