The Central Bank of Brazil President Defends Moderate Rules for Crypto

The Central Bank of Brazil President Defends Moderate Rules for Crypto

The President of the Central Bank of Brazil, Roberto Campos Neto, has defended the use of moderate rules and regulations for crypto. Campos Neto stated that while regulation is indeed necessary, it has to be done in a way that does not hinder innovation. He also explained that his goal is to connect the digital with the regulated world.

Regulation that 'Allows Innovation and Growth of Investments in Crypto'

The central banks of several nations around the world are beginning to establish their positioning on cryptocurrencies and Central Bank Digital Currencies (CBDCs). At "The Regulation of Cryptocurrencies in Brazil and the World," a debate event, the President of the Central Bank of Brazil, Roberto Campos Neto, presented his thoughts about cryptocurrency regulation.

According to Campos Neto, regulation of these instruments should be made in a way that allows for innovation and growth of investments in cryptocurrencies. He stated that,

"In general, central bankers want to regulate with a heavy hand. I understand, but I don’t agree. Maybe it’s a mistake to regulate like that... We shouldn’t leave behind the technological advances that will come with this. "

Campos Neto also outlined that one of his goals is to integrate the digital and the regulatory worlds in a different way from other central banks.

Regulation should not 'Stifle the Growth of the Crypto Markets'

The President of the Brazilian Securities and Values Commission (CVM), João Pedro Nascimento, also stated that he had similar ideas, saying that regulation should not stifle the growth of the crypto market. He declared that,

"Banning a revolution is not something we will do."

Nascimento had previously declared that there is a natural demand for cryptocurrency regulation as a consequence of the evolution of the technology. The CVM has proposed an advisory opinion regarding crypto and its treatment, which is under review, to be used before a crypto-centric law is sanctioned.

The legislative process for approving a cryptocurrency bill is quite advanced in Brazil. A cryptocurrency-centric bill that would help to bring clarity to the crypto markets and virtual asset service providers is currently waiting to be discussed by the Deputy Chamber in September. However, due to the proximity of the General Elections of the President, Vice President, and Members of Congress, the discussion might be delayed again.