The presidential candidate that obtained most of the votes in the first Brazilian ballot round, Luis Inacio Da Silva, better known as “Lula,” declared that the Central Bank of Brazil should be responsible for building a cryptocurrency law framework. Lula stated, “Lula” that cryptocurrencies must be carefully evaluated in order to minimize any negative effects on the country’s economy.
Lula supports Central Bank Oversight on Crypto
The candidate that obtained most of the votes in the first voting round in Brazil’s presidential elections, Luis Inacio “Lula” Da Silva, has revealed his stance when it comes to crypto regulation in the country. Lula indicated his support for the Central Bank of Brazil. According to Lula, this bank would be responsible to build cryptocurrency regulations because of its autonomy.
This sector had grown tremendously in recent years, prompting regulators to pay attention. Lula stated this law framework should help to “avoid illegal practices that we can do using crypto assets, such as money laundering and currency evasion, in addition to avoiding fraudulent trading practices.”
In order to prevent a potential negative effect on the country’s economy, the candidate proposed that cryptocurrency markets be closely monitored.
Sovereign intentions and current regulatory attempts
Lula has been a big promoter of breaking Brazil’s dependence on international dollar markets. Lula said in July that, if elected, he would be a strong supporter of the issue of Latam’s single currency called SUR (Spanish meaning south) He did not provide any further details. Brazil is currently piloting its central bank’s digital currency, called the digital real.
In accordance with the statement of the candidate there is already an initiative for a cryptocurrency bill in the possession of the Brazilian Congress’ deputy chamber. It hasn’t been touched upon due to general elections being the main focus of deputies. There is still plenty of time to talk about it, but if the bill gets delayed beyond next year, it will need to have the support and guidance of a new raporteur. The new deputies would then have to review the projects in order to allow them to revisit the issue.
This would make it more difficult to approve the current bill. Similar to what happened before in Latam, Lula could also veto this bill if he wins the election.
What do you think about Lula’s stance on cryptocurrency regulation? Leave a comment below.
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