In late 2022, the President of Brazil enacted a law recognizing cryptocurrencies as a viable means of accumulating wealth.
The legislation was signed by Jair Bolsanaro before he stepped down from the presidency on December 31.
This week, Roberto Campos Neto, the head of Brazil’s Central Bank, appeared before a parliamentary commission on finance and taxation to announce plans to enhance regulations on cryptocurrency fund movements.
According to Neto, digital currencies have amassed about 35.9 billion reais ($7.4 billion) in the Brazilian market in the first eight months of this year, a significant increase of over 42% compared to the same period last year.
The Central Bank is concerned about the potential use of cryptocurrencies in illegal activities and has proposed introducing a digital version of the national currency, the real.
This move aims to reduce the use of untraceable digital assets like Bitcoin, as emphasized by the head of the Central Bank.