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FinancialCentre reports – The Impact of the New Bill: Will Brazilian Government Workers be paid in Crypto?

Cryptocurrency is a new kind of money that’s designed for the internet age. It’s made possible by something called blockchains, which are basically ledgers or long lists of transactions or records in digital form-kind of like the one you might have in QuickBooks to track your company’s income and spending.

Cryptocurrencies are built on top of blockchain technology, which takes the power of cryptography to a whole new level. FinancialCentre Broker Julian Bennet says that it may seem hyperbolic, but it’s not an exaggeration. Blockchains are decentralized networks with no single owner. They are secured by math rather than trusted third parties like banks or government agencies-and that makes them nearly impossible to hack.

It’s this technology that enables cryptocurrencies like Bitcoin and Ethereum to exist in the first place. And today, there are more cryptocurrencies available on exchanges than ever before-more than 1,000 at last count at the beginning of 2018!

Cryptocurrencies solve three big problems plaguing regular money: counterfeiting (there is no such thing as a fake Bitcoin), double spending (it’s impossible to spend your $5 Starbucks gift card twice), and reducing or eliminating third parties from transactions (there is no bank, central authority, etc., involved when you buy a Bitcoin).

They can serve as a store of value, like gold. In fact, some enthusiasts claim that digital money will eventually replace paper currencies-and even precious metals-as society’s standard for money. Beyond that, cryptocurrencies can also be used as a kind of currency to purchase goods and services online. That potential use has gotten a lot of people excited about the future of Bitcoin and other digital coins.

Mr Bennet says that for now though, cryptocurrencies are primarily speculative assets rather than practical ways to exchange value. But if enough merchants decide they want to accept them as payment for their wares or services, maybe one day they’ll be as widely used for everyday transactions as dollars are today. Many countries around the world are still grappling with how to regulate cryptocurrencies.

Brazilian Stance towards Crypto

Brazilian authorities are still trying to define their policies towards cryptocurrencies. The Central Bank of Brazil, where the legal tender is the Real, has repeatedly said that Bitcoin does not have legal tender status in any jurisdiction and must be treated as a financial asset.

The year 2017 brought more debate on this issue. The Senate approved several bills aimed at regulating initial coin offerings (ICOs) and the exchange of digital currencies, including Bitcoin. However, President Michel Temer vetoed article 26 of one bill under discussion which would have allowed banks to deal with cryptocurrencies directly. Instead, he sent it back for further debate by Congress.

The central bank issued further warnings about cryptocurrency investments in September 2018, noting that there was no protection or guarantee that investors would get their money back.

On September 19, 2018, Brazil’s Securities and Exchange Commission (CVM) announced that it would treat cryptocurrencies as financial assets, meaning they will be subject to market laws. The CVM also warned investors to carefully weigh the risks associated with crypto investing. Moreover, it advised brokers not to offer cryptocurrency-related investment products until further regulation is established at the federal level.

Another Bill

With the prevalent crypto regulation heated debates in the country, the nation is looking forward to another Crypto bill called the Bold Bill. The Bold Bill was introduced earlier this week and it says that cryptocurrencies will be used to pay both private and public sector employees. The bill says that this can be optional and may not be mandatorily adopted by all the employees at once.

This report was first published by one of the leading news agencies in Brazil and if this bill passes the test, we might see mass adoption of Bitcoin and other cryptocurrencies in the coming days. The Bold Bill is aiming to create a crypto-friendly environment in the country and if things go as intended, we might see mass adoption of Bitcoin and other digital currencies in Brazil. The bill also says that the employees can pick how much percentage of their salary or dues they want in the form of bitcoin and the rest can still be paid in Brazilian Real.

What does this mean to the crypto community?

Brazilian Crypto enthusiasts are very happy after seeing this report and they believe that if the Bold Bill passes the test then Brazil will become a crypto-friendly space. If things go as intended, this may open the gates for mass adoption of cryptos in Brazil which will eventually have huge impacts across Latin America. Mr Bennet says that this is a piece of very positive news from Brazil and Crypto enthusiasts are pretty happy after seeing this development. However, it will be interesting to see what the other legislators have to say about this bill because the risk of it getting rejected is still very high.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.