Brazil approves cryptocurrency bill recognizing Bitcoin as a payment method

Lawmakers in Brazil have approved a cryptocurrency framework bill for the use of digital currencies in the Latin American country.

Once passed into law, Brazilians can use Bitcoin as a payment method, while digital assets will be recognized as an investment asset class.

Bitcoin as payment

House bill 4401/21 aims to establish an agency to oversee the Brazilian cryptocurrency industry. This includes managing the operations of service providers, such as crypto exchanges.

Under the bill, exchanges are required to observe specific rules to be allowed access to the Brazilian market. For example, processes to segregate users’ funds from the exchange’s funds. The rules also require service providers to gain approval at the federal government level as well.

While this represents a huge step forward for cryptocurrency adoption, the bill falls short of making Bitcoin legal tender.