What’s happened to Brazil’s ‘Bitcoin Bill’?

Brazil’s proposed ‘Bitcoin Bill’, which many had anticipated would have received the green light by now, is still in progress, according to sources.

The outlined document ‘PL 2303/15’, submitted by federal deputy Aureo Ribeiro is still on the table in the Chamber of Deputies, together with plans for a CBDC launch.

Whether and when the chamber will vote depends on agreements between party leaders. The Senate then follows, before it is presented to the Presidential desk.

Brazilian citizens who have been snapping up Bitcoin in huge numbers, however, clearly believe the Bill will be granted approval soon.

The Brazilian “virtual asset” bill wants, according to the official report, to define virtual assets and virtual asset services providers and enhance investor protection by increasing regulation.

It says that virtual currencies could fall under the regulation of the Brazilian Central Bank and be supervised by the country’s Financial Activities Control Board (COAF).

That doesn’t mean the country will copy-and-paste El Salvador’s example, but that it could follow Venezuela and focus more on developing its own CBDC, the digital Real.

Brazilians buy millions worth of cryptos every month

The Central Bank of Brazil (BCB) governor Roberto Campos Neto has indeed been previously quoted saying that making Bitcoin legal tender in the country is not on his agenda. However, this week he revealed that Brazilians own around $40 billion in crypto.

“It’s a very big business, it attracts the attention of regulators all over the world, it’s not just in Brazil”, he said.

He also added the government may be ready for a central bank digital currency (CBDC) as early as 2022.

Brazil’s crypto community has been making huge investments in Bitcoin in the anticipation of its government making it legal tender.

The commercial asset balance report presented shows that Brazilians have consistently acquired more than $350 million dollars of cryptocurrencies each month since January. However, according to some analysts from the central bank, this number has the potential to double its worth this year.

The Bill itself wants to increase investor protection with stricter regulation for companies getting involved in “virtual assets” per the bill, either by offering trading or custody solutions.

The legislation says “virtual assets” are property — any digital representation of value that can be negotiated or transferred through electronic means and utilised as an investment or means of payments.