The President of Brazil, Jair Bolsonaro, has signed a bill into law that establishes a regulatory framework for the use and trading of bitcoin in the country.
The new law, which will come into effect 180 days after being signed, recognizes bitcoin as a digital representation of value that can be used as a means of payment and as an investment asset, but it does not make bitcoin or any cryptocurrency a legal tender in Brazil.
The executive branch will select the government bodies that will oversee the market, with the expectation being that the Central Bank of Brazil will oversee bitcoin as a payment method and the country’s securities and exchange commission will oversee it as an investment asset.
The new regulatory clarity provided by the legislation may encourage businesses to consider using bitcoin as a payment method in Brazil.
