Presidential candidate Luis Inacio Da Silva (aka “Lula”), who received the most votes in Brazil’s first round of voting, declared that the Central Bank of Brazil Lula also declared that cryptocurrencies should be subject to the same legal framework. Lula also stated that the impact of cryptocurrencies should be measured to avoid any negative effects they might have on the national economy
Lula supports central bank oversight on crypto
Luis Inacio “Lula” Da Silva, the candidate who received the most votes in the first round of voting in Brazil’s presidential election, has made his stance on the country’s crypto regulations clear. Lula expressed his support for the Brazilian Central Bank. According to Lula, the central bank, due to its autonomous nature, must be responsible for the creation of cryptocurrency regulation.
The candidate explained that the sector has grown so much recently that regulators have turned their attention to the issue. Lula said that the legal framework should help “avoid illicit activities that can be done with crypto assets, such as money laundering and currency avoidance, in addition to avoiding illicit transactions.”
The candidate also suggested monitoring the cryptocurrency market to avoid negative impacts on the national economy.
sovereign intent and current attempts at regulation
Lula has been a strong proponent of ending Brazil’s dependence on the international dollar market. In July, Lula announced that if he won the election, he would support the issuance of a common Latin American currency called the SUR (Spanish for South). However, he did not specify the details. Brazil is currently in the testing phase of its own central bank digital currency, the digital real.
Apart from the candidate’s statements, the deputy speaker of the Brazilian Congress already has a cryptocurrency bill project in his hands. However, it has not been discussed because the deputies are focused on the general elections. There is still time for it to be debated, but if it is postponed to next year, the bill will need to gain the support of the new rapporteur and the new deputies will need to study the project so that it can be debated again.
This new study process would delay approval of the current bill. Likewise, if Lula wins this month’s elections, he could veto it upon passage, as has happened previously in other Latin American countries.
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