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HomeNewsBitcoin NewsBitcoin will soon become legal tender in Brazil

Bitcoin will soon become legal tender in Brazil

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Bitcoin will receive the status of an official means of payment and an investment asset thanks to a law that was signed by President Jair Bolsonaro. This law will come into force 180 days after signing and considers bitcoin as a digital representation of value. The responsibility for using bitcoin as a means of payment will lie with the Bank of Brazil, while the Securities and Exchange Commission will oversee bitcoin as an investment asset. The chairman of the Bank of Brazil, Roberto Campos Neto, points to the volatility of bitcoin and does not see it as an alternative to traditional fiat currencies. The regulator plans to issue a national bank digital currency (CBDC) in 2024 after conducting a closed pilot program with financial institutions.

However, despite the fact that bitcoin will officially become an acceptable means of payment and an investment asset, many experts still doubt its sustainability. The volatility of bitcoin, which is characterized by sharp price fluctuations, is still one of the main problems that this cryptocurrency faces. This can make it difficult to use it as a primary means of payment for everyday transactions.

In addition, some experts believe that bitcoin does not have sufficient stability for the role of an investment asset. Its price can fluctuate significantly depending on market conditions, which can create risks for investors. Also, some fear the possibility of digital currency being used for illegal purposes such as money laundering and terrorist financing.

However, the adoption of bitcoin as an official means of payment and investment asset is a significant step forward for the development of the cryptocurrency market and can help spread the use of bitcoin in various sectors of the economy. However, it is important to understand that there are risks and limitations associated with using bitcoin, and one must be careful when using it. It is also important to remember that the Bank of Brazil and the Securities and Exchange Commission will be responsible for overseeing the use of bitcoin as a means of payment and investment asset, respectively, which can improve the sustainability and reliability of the use of bitcoin.

In conclusion, although bitcoin will receive the status of official tender and investment asset, there are risks and limitations associated with its use that should be taken into account. Despite this, the adoption of bitcoin is an important step in the development of the cryptocurrency market and can contribute to the spread of its use in various sectors of the economy.

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