July 21, 2024
Brazil's Central Bank Response to Surging Cryptocurrency Use
Latest Cryptocurrency News

Cryptocurrency Surge in Brazil Prompts Stricter Regulations: Central Bank Governor

The governor of Banco Central do Brasil, Brazil’s central bank, has acknowledged a significant increase in cryptocurrency adoption within the country and has expressed the intention to respond by strengthening regulations governing digital assets.

During his address to the parliamentary Finance and Taxation Commission on September 27th, Roberto Campos Neto highlighted the growing trend of cryptocurrency imports by Brazilian citizens. According to data provided by the central bank, cryptocurrency imports have surged by 44.2% from January to August 2023 when compared to the previous year, totaling approximately 35.9 billion Brazilian reals (equivalent to $7.4 billion). Campos Neto also emphasized the rising popularity of stablecoins, noting that they are increasingly being utilized for payments rather than investment purposes. He affirmed that the central bank will address these developments by imposing stricter regulations and subjecting cryptocurrency platforms to its oversight. Additionally, he noted that potential issues associated with cryptocurrencies could involve tax evasion or illicit activities, stating that they understand that a lot is connected to tax evasion or linked to illicit activities.

In June 2023, Brazil assigned the central bank a primary role in regulating cryptocurrencies. Nevertheless, projects involving tokens classified as securities will continue to fall under the jurisdiction of the Comissão de Valores Mobiliários, Brazil’s equivalent of the United States Securities and Exchange Commission (SEC).

Furthermore, Banco Central do Brasil is actively working on the development of its own digital currency, known as Drex. In August, the central bank unveiled the branding and logo for this digital currency. However, there was a prior controversy when Brazilian blockchain developer Pedro Magalhães reportedly identified functionalities within the Drex code that could potentially allow a central authority to freeze funds or reduce account balances.

Image by pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Divided Opinions Surround Newly Introduced ERC-404 Tokens

Robert Paul

GROK Tokens Take the Crypto Market by Storm

Bran Lopez

Bitfinex Users Offered Share Buyback After 2016 Hack Compensation

Christian Green

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.