Brazil passes law on cryptocurrency legalization

The Brazilian Parliament has passed a law legalizing cryptocurrency payments. Digital assets have been granted legal status in the country, and Brazilians will now be able to pay for goods and services in cryptocurrency.

The law allows for the issuance of licenses for cryptocurrency exchange platforms, as well as for the storage and management of cryptocurrency by third parties. To avoid incidents such as the Terraform Labs and FTX collapses, the law will require exchanges to clearly distinguish between company and user funds.

Also, the Bank of Brazil is working on creating its own CBDC, according to the head of the institution, Roberto Campos Neto, the idea is to integrate CBDCs with both traditional and decentralized financial structures and institutions. The bank is working on the development of a wallet where users can store stablecoins and CBDC.

On November 3, the cryptocurrency became available at 24,000 ATMs in Brazil. This is thanks to the cooperation between the company that developed the most popular stablecoin Tether (USDT) and cryptocurrency service provider SmartPay, which integrates USDT into its system. Millions of Brazilians have gained access to the use of stablecoins in their everyday lives without having to put much effort into it.

It is worth noting that in the summer, the Brazilian authorities began working on a bill to tokenize all gold on the blockchain. The procedure should ensure transparency in the industry and prevent irregular mining of precious metals. The introduced changes will be aimed at establishing new rules for buying, selling and trading Brazilian gold, which will then be registered on the blockchain.