Brazil’s new bill seeks to allow cryptocurrency and other digital currencies as payment methods in Brazil. Paulo Martins (Federal Deputy) presented the bill to modify existing regulations and include several provisions that allow for official support of cryptocurrency investments and payments.
A new bill proposes to legalize crypto for payments in Brazil
Brazil has made significant progress in cryptocurrency regulation over the past year. A new Brazilian bill is now being considered by Congress. It proposes bitcoin and other cryptocurrency as supported payment methods. This bill was introduced by Paulo Martins (Federal Deputy). It proposes to achieve this goal by amending existing Brazilian laws including the Civil Procedure Code, adding definitions and changing.
The bill, if approved, would insert disposition XIV to article 835, Civil Procedure Code. It reads:
Digital representations of value, also known as crypto assets, can be used electronically to trade through cryptography.
Courts Collect Crypto
This bill will also allow the court to collect and pay debts using crypto. It clearly defines the necessary steps for this technology. First, it protects the user’s private keys. This clarifies that no court will have access to them. A debtor who wishes to cancel a cryptocurrency-based debt would need to transfer the desired cryptos to the appropriate court’s wallet.
When a court is involved in a debt collection case, it will cooperate with intermediaries who will block any crypto assets. This will ensure that debtors fulfill their obligations. But, it does not specify the procedure in case there are no intermediaries that hold the funds. The assets would be in their own custody wallet.
These are part of efforts by national regulators in establishing clear standards for crypto use on Brazilian soil. The Brazilian Senate has approved another cryptocurrency bill. This will be discussed again and it is anticipated that the deputy chamber of Congress will also approve the bill in the near future.
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