Prolly nothing... A BRIC nation that has oil... Prolly nothing https://bitcoinmagazine.com/legal/brazil-approves-use-of-bitcoin-as-payment BRAZIL APPROVES BILL REGULATING USE OF BITCOIN AS PAYMENT Brazilian lawmakers have approved a complete regulatory framework for crypto, regulating the use of bitcoin as payment. Voted on Tuesday evening in Brasilia, the country’s capital, the new rules recognize bitcoin as a digital representation of value that can be used as a means of payment and as an investment asset in the South American nation. The bill applies broadly to a sector which it calls “virtual assets,” and now only needs the President’s signature before it becomes law. It does not make bitcoin or any cryptocurrency a legal tender in the country. The bill tasks the executive branch with selecting government bodies to oversee the market. The expectation is that the Central Bank of Brazil (BCB) will be in charge when bitcoin is used as payment, while the country’s securities and exchange commission (CVM) will be the watchdog when it is used as an investment asset. Both the BCB and the CVM, along with the federal tax authority (RFB), helped lawmakers craft the overhaul legislation. Home to a vibrant cryptocurrency economy, Brazil has at times seen more citizens trade coins such as bitcoin than invest in the stock market. Now, the country seeks to set the stage for that to translate into more day-to-day usage in financial transactions. But not all in the text is positive for the development of the market in the country. A big miss from Tuesday’s vote was the rejection of a clause that sought to cut some state and federal taxes on purchases of bitcoin mining machines. While the text was quite restrictive –– the benefit would only apply to operations using renewable energy sources –– it was apparently not enough to be approved. Other provisions include the regulation of service providers such as exchanges, who will need to abide by specific rules to operate in Brazil. The bill seeks to regulate the establishment and operation of Bitcoin service providers in Brazil, defining such entities as those who provide cryptocurrency trading, transfer, custody, administration, or sale on behalf of a third party. Cryptocurrency service providers will only be able to operate in the country after explicit authorization by the federal government. One rule sought to demand that such companies explicitly separate their patrimony from capital owned by customers –– for example, bitcoin the firm custodies for users. The clause sought to prevent events such as the recently seen with FTX, where user funds were commingled with the company’s funds, and help the recovery of user assets in the event of bankruptcy. It was rejected on Tuesday’s vote.
This will be the first real test of the currency being used as legal tender with actual GDP imports/exports etc, unlike El Salvador.
Confusion reigns in Brazil. What does "...can be used as a means of payment and as an investment asset but not as "...legal tender" mean? I suppose it means that The Government will not accept crypto currencies in payment of taxes. If that's what it means, then that, at least, is good. Any representation, however, that crypto currencies are valid investment assets only invites disaster. That the Government desires to bring some oversight to crypto markets may afford a weak measure of protection to those who choose to gamble in them, but any representation that they represent valid investment assets is nuts. Anyone who would accept crypto for payment for anything other than illicit goods or services would be an uninformed fool, a gambler, or both. I mean, why would you?
Anyone in Brazil can hold US $ on their phones or computers without having a bank account Brazilians are more advanced in financial sovereignty than the people in countries like Canada or Australia Who could have predicted that?? https://www.coindesk.com/business/2...-make-usdt-available-at-24000-atms-in-brazil/
well hell i guess stupid bazillions are not reading et or they would know all crypto is going to collapse soon...
Fairly straightforward. A business, like a coffee shop, a grocery store, or oil rig company can accept Bitcoin as a payment method and will not have any problems with the local cops or city/state ordinances If there are any transaction disputes, can be settled in the courts, equal protection for the consumer or the merchant
And how would that differ from the past? In the U.S., and in Brazil or anywhere in the world, so long as there is no law prohibiting the use of crypto, businesses, or any individual can accept crypto if they choose to. Was crypto illegal in Brazil before this new law was past? If it wasn't they don't need a law to make crypto legal for payment. They may need a law if they want to regulate it though. I would guess this is what the new law is really about.