A new bill proposed by Brazil is trying to introduce bitcoin and other cryptocurrencies as an approved payment method in the country. The bill, introduced by federal deputy MP Paulo Martins, proposes to amend existing regulations to include several dispositions that allow cryptocurrency payments and investments to be officially backed.
New bill proposes to legalize cryptocurrency payments in Brazil
Brazil was one of the countries in Latin America that made progress in cryptocurrency regulation last year. Now, the Brazilian Congress has introduced a new bill aimed at introducing bitcoin and other cryptocurrencies as a supported payment method. The bill, introduced by federal deputy MP Paul Martins, proposes to achieve this by amending existing Brazilian laws, including the code of civil procedure, to introduce some definitions and modifications.
If approved, the bill would introduce Section XIV in Section 835 of the Code of Civil Procedure, which reads as follows:
Cryptoassets, understood as digital representations of value, not currencies, have their own unit of measurement, and are used as financial assets, means of exchange or payment to obtain goods and services through the use of cryptography and electronic transactions within the scope of distributed ledger technology or investment tools.
Courts collect cryptocurrency
The bill will also introduce the option of using cryptocurrencies to collect and pay debts through the courts, clearly defining the steps that must be taken to use the technology. First, the Act protects users’ private keys, making it clear that courts cannot access these private keys under any circumstances. To cancel a debt using cryptocurrencies, the debtor must deposit the desired cryptocurrency into the wallet of a particular court.
In the case of debt collection, the court will coordinate with the intermediary, who will then proceed to block the debtor’s crypto assets to ensure they meet their obligations. However, the bill does not provide for procedures where there is no intermediary to hold the funds, which means the assets are in self-custody wallets.
This is part of an effort by national regulators to create clear norms for the use of cryptocurrencies on Brazilian soil. Brazil’s Senate has discussed and approved another cryptocurrency bill, which is expected to be approved by the deputy chamber of Congress in the coming months.
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