Brazil’s Chamber of Deputies (its’ Congress equivalent) has approved legislature that legalizes cryptocurrency as a means of payment, though the bill still needs to be signed formally by the President.
It is difficult to understate what a groundbreaking event this is within the murky world of crypto regulation.
By recognizing cryptocurrency as a legal means of payment, the Brazilian government will actually have the authority to enforce some rules! Crypto use will need to be tracked and reported by individuals and businesses. Penalties, fines, or prison time can be applied in the case of illegal dealings.
Brazil’s relationship with crypto is fascinating. Most Brazilian banks and brokers have full service offerings related to crypto including purchasing and custody. Brazil has the greatest number of crypto ETFs available in Latin America. Starting in 2023, residents of Rio de Janiero will be allowed to pay property taxes using crypto. It’s incoming (again) President-elect Lula has previously signaled a willingness to engage with crypto.
Brazil has both a high number of billionaires and high percentage of the population that is both unbanked and living below the poverty line. The average age of Brazil’s population is 32. Only four other countries in the world had a higher percentage cryptocurrency ownership in 2019: South Africa, Thailand, Indonesia, and Vietnam.
Drum roll please…
A full 40% of those who own crypto in Brazil make less than the country’s minimum wage.
And
Bitcoin trade volume has exceeded gold trade volume here.
The young, poor, and disenfranchised citizens of Brazil are leading a global currency revolution.
Chainalysis provides some of the best metrics and insights into global crypto and blockchain adoption, patterns, usage, and regulations. Their policy and regulation blog is exceptional if you have further interest in this subject (see below).
