BC and CVM study Bitcoin regulation in Brazil, says Central Bank president

The Central Bank of Brazil (BC) is talking to the Brazilian Securities Commission (CVM) about the regulation of Bitcoin in Brazil. The revelation was made by the president of the Central Bank, Roberto Campos Neto, this Thursday (19th).

Campos Neto had already commented on Bitcoin regulation, making it clear that in his view the companies and people involved should have a regulation soon.

It is worth noting that the National Congress pressures the autarchy to release a position on the matter. In recent days, a regulation that is being processed in the Federal Senate had an advance, indicating that the BCB should create rules for the sector by law soon.

This Thursday, Campos Neto participated in an event at the Council of the Americas (AS/COA).

BC and CVM are adjusting Bitcoin regulation in Brazil

Earlier this week, Roberto Campos Neto had already met with representatives of the companies Binance and Circle, according to his official schedule. This meeting drew the attention of the Bitcoin community in Brazil, which observed the debate as part of the process of regulating the Brazilian cryptocurrency market.

This Thursday, participating in the AS/COA event, Campos Neto spoke publicly about Bitcoin regulation in the country, in response to a question from JPMorgan bank, the sponsor of the meeting.

“Some central banks are studying how to get cryptocurrencies into their economies and how to regulate and control this new and fast-growing currency market. How is the BCB dealing with this challenge and what is your view on the possibility of regulating cryptocurrencies in the Brazilian market?”

Campos Neto highlighted that this is a very important question, but it involves more than cryptocurrencies. The Central Bank of Brazil is keeping an eye on stablecoins and how central banks are reacting to this new payment technology.

He said it was important to remember that these technologies arose in a context that people need a system with features that are not inherent in central bank currency systems.

People want transactions that are fast, transparent, open, secure and above all, transparency in every step of this process.

Bitcoin is not currency but an investment

Roberto Campos Neto also added that he does not see cryptocurrencies as a means of payment, but rather as investments. Thus, people who get involved in this market buy the coins hoping to make gains over time, not to make purchases.

“When you look at the cryptocurrencies in some of the instruments you see that they can be separated into two parts: means of payment and investment products. We see more growth in use as an investment than as a means of actually making payments.”

The president of the BCB then declared that Brazil already has a good instant payment system, the PIX, so it lessens the need for people to use cryptocurrencies for this purpose.

Thus, in response to JPMorgan, Campos Neto said that yes, the Brazilian autarchy is paying attention to the sector and talking to the CVM to regulate Bitcoin in Brazil.

“For us, it is more than regulating cryptocurrencies, stablecoins, it is what will be the regulation of the future? The financial market changes a lot and fast, everything is becoming data. So we are trying to understand how to remodel the data regulation, the finances will be given, so it is more than that, but we are talking to the CVM about this matter and we understand that there is a demand for this that will be with us for a while”.