According to the federal government’s official journal, Brazilian President Jair Bolsonaro signed a measure into law on Thursday morning that sets a comprehensive regulatory framework for the trading and usage of bitcoin in the country (DOU).
President Bolsonaro signed the law passed by Congress with no changes. According to previous reports, the new rules acknowledge bitcoin as a digital representation of value that can be used as a means of payment and an investment instrument in the South American country.
A virtual asset is defined as “a digital representation of value that may be negotiated or transferred electronically and utilized for payments or as an investment,” according to the bill’s language.
The new law, which takes effect 180 days after its signing today, does not make bitcoin or any other cryptocurrency legal cash in the country. Regardless, the legitimacy bestowed upon BTC’s use case as payment is significant and has the potential to stimulate additional activity in the country. However, the extent to which this occurs is determined by the activities of the regulator in charge.
