Following the lead of El Salvador, nearby Brazil may soon be using Bitcoin as currency. In accordance with the Brazilian Federal Deputy, Brazilians will buy any things in Bitcoin soon. That’s according to Federal Deputy Aureo Ribeiro, who stated Brazilians will have the ability to purchase homes, automobiles, and McDonald’s with the world’s largest cryptocurrency.
This is possible thanks to the passing of Bill 2.303/15 last Wednesday, which seeks to provide a legal framework for digital currencies. However, the Bill faces the last hurdle in passing earlier than the plenary of the Chamber of Deputies (Cámara dos Diputados) within the coming days.
The Chamber of Deputies is considered the lower house of the National Congress of Brazil, and it has 513 members who are elected every 4 years. The plenary is the Chamber’s foremost physique, where deputies convene to debate and vote for proposals.
Ribeiro said Brazil needs this to formalize using cryptocurrency and to attract foreign investment. The upshot will see Bitcoin being used in day-to-day transactions.
“We wish to separate the wheat from the chaff, create rules in an effort to commerce, know the place you might be shopping for, know who you are dealing with, and have this asset to purchase a home, a car, go to McDonald’s to buy a hamburger, it will be a currency within the nation as it occurs in other countries.”
In accordance with Ribeiro, the proposal has strong support in the Chamber of Deputies, and he sees few obstacles stopping its approval.
Strong support for Bitcoin in Brazil
A recent survey performed by Sherlock Communications found almost half of respondents imagine Bitcoin must be authorized tender.
The study questioned 2,700 over 18s from seven Latin American nations: Brazil, Argentina, Chile, Colombia, Costa Rica, El Salvador, Venezuela, and Mexico.
It discovered that 48% of Brazilians think their country should adopt Bitcoin, with 31% agreeing and 17% strongly agreeing with that statement.
“Brazilians were the biggest supporters of recognizing bitcoin in the region, with 56% supporting El Salvador’s strategy and 48% saying they want Brazil to adopt it too.”
Researchers found 55% of Brazilians invest in Bitcoin to diversify. As compared, 39% stated they accomplish that to protect against inflation and economic instability.
Civil unrest in Brazil
Since February, Brazil’s inflation rate has seen consecutive month-on-month will increases, with the latest August figure just shy of double digits at 9.68%.
In response, the central bank has raised rates of interest 5 times this year, with some analysts calling for even higher charges based on a belief that the present measures are not nearly sufficient to tackle spiraling prices.
Last weekend saw tens of thousands of protestors calling for President Jair Bolsonaro’s impeachment. They blamed President Bolsonaro for soaring unemployment and the spread of hunger among the population.
With civil unrest building, Bill 2.303/15, whereas extremely irregular in the grand scheme of issues, may see implementation off the back of politicians fighting to save their political careers.