A bill has been introduced in the Brazilian parliament that would allow the use of cryptocurrencies for payments

Home / A bill has been introduced in the Brazilian parliament that would allow the use of cryptocurrencies for payments

Brazilian Federal MP Paulo Martins has introduced a bill that would expand both the legal use of cryptocurrency in the country and the power of the courts to confiscate it.
The proposed addition to Article 835 of the Code of Civil Procedure states that although cryptoassets are not currency per se, they can “be used as a financial asset, a medium of exchange or payment, an instrument of access to goods and services or an investment.”
This would not necessarily make bitcoin or any other cryptocurrency legal tender. However, if the law does pass, cryptocurrency will become a legally recognized financial asset for investment and other purposes.
A broad interpretation of the bill suggests that cryptocurrencies will be able to be used to pay for goods and services across the country. According to the document, digital assets could also be used to pay off debts.
In addition, the proposal discusses the new powers and restrictions that Brazilian courts will receive once cryptocurrency is recognized as a financial asset.
The bill says the courts would be able to freeze the accounts of defendants, but the judiciary would not be allowed to seize users’ private keys.

The debtor would have to send his or her cryptocurrency payment to the court’s wallet to ensure its validity.
In turn, if the defendant stores cryptocurrencies on exchanges, the court will be able to order the exchanges to freeze the debtor’s cryptoassets.

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