First it was El Salvador and now Brazil wants to join in, the government wants it to be legal tender. Using bitcoins to “buy a house, a car, go to McDonald’s to buy a hamburger,” according to the Brazilian federal deputy, Aureo Ribeiro. For that to happen, yes, the law must first be approved.
The South American nation is preparing to vote on a new bill to regulate cryptocurrencies in the country. It is expected to be presented to the Chamber of Deputies in the next few days. As Aureo Riberio has indicated, they want to “separate the wheat from the chaff” and create regulations so that it is known where it is being bought and how the cryptocurrencies are being used.
If the bill receives the go-ahead from the Brazilian Chamber of Deputies, the country will move forward to implement Bitcoin as legal tender. This will mean that the currency will be official in the country together with the Brazilian Real, the current state currency.
Bitcoin in Brazil, as in so many other countries, plays on a fine line that separates what is regulated from what is not. What the country of South America seeks with this new law is correctly regulate its use so that it has legal recognition. Being regulated by a government agency means that it will also be subject to the tax laws and especially crimes of the country. Penalties will be stiffened for those who participate in cryptocurrency scams or theft.
Following in the wake of El Salvador
2021 may be the year that not one but two countries in the world adopt Bitcoin as legal tender. El Salvador has been the first and, with its pluses and minuses, it is managing to implement it as a state currency alongside the US dollar. Something that the International Monetary Fund does not look favorably on.
The underlying problems of BitcoinRegardless of whether it is adopted as legal or not, they will continue to be there. Perhaps the greatest of all is the enormous volatility it reaches compared to other traditional currencies. On the other hand, in recent years the enormous consumption of energy resources that it entails has been demonstrated time and again. Obtaining that energy in a clean way from nuclear or geothermal plants does not solve the problem either, in the end, a huge amount is still used to mine critical compounds or operate with them instead of allocating it to other activities.
Via | Investing and yahoo! finance