Post
Topic
Board Bitcoin Discussion
Re: Brazil Has Approved Bill Recognizing Bitcoin As a Payment Method.
by
uneng
on 30/11/2022, 17:56:37 UTC
This is could be a much bigger news that it looks like right now in the near future. When you consider that Brazil is a member of BRICS and kind of a "leader" in South America since they can convince a bunch of other countries in South America to do the same specially because they have good economical relations amongst themselves.
In other words in the following year or two we could see a lot of other countries accept bitcoin as a legal payment method...

As I posted in some other topic, this law is not what it looks like
It has nothing to do with payment method. This is much worse, and it is just old oligarchs trying to increase barriers to new players.

Tldr: bad, old, national exchanges trying to ban binance and every other foreign one that can offer a better service

As I am from Brazil, I have been following this for quite some time.

There is a fundamental problem here with this law, which can be checked in the portuguese version:

https://cointelegraph.com.br/news/on-a-historic-day-deputies-approve-cryptocurrency-bill-in-brazil
Abccripto, a group of old and low quality Brazilian exchanges is behind this law.

This group have tried many times before to as government to ban binance from Brazil, as binance offers a high quality service for very low fees.

You can see here abccripto asking central bank to ban binance
https://www.abcripto.com.br/post/abcripto-aciona-bacen-mpf-e-cvm-contra-corretora-binancehttps://exame.com/future-of-money/dinheiro-tendencias/abcripto-pede-que-bc-mpf-e-cvm-suspendam-operacoes-da-binance-no-brasil/

This group wouls never support this law if it didnt help them in their goal

In the end, national exchanges cannot compete with binance. They offer a bad service (low volume, few coins, high fees, instability and website goes down when price drops etc.. ). So they are trying to ban binance.

Biannce has now about 60% of Brazilian daily volume.
I imagine what would happen to customers from crypto platforms which potentially become forbidden by local regulators through this law. Customers from Binance, Crypto.com or any other service providing credit/debit cards, investments' opportunities. Would they lose their money, lose access to services and investments and become hostages of useless, abusive, non-profitable local crypto services protected and endorsed by the country government's agencies? I've already stopped using local exchanges before due to high costs imposed on users and I don't pretend using them again futurely. And if we are going to be forced to, an alternative must be found.