Brazil is looking to add a clause to an existing law that will allow Brazilians to use cryptocurrencies to conduct payments and have their financial information protected from the courts.
This proposal is not the same as making Bitcoin (BTC) legal tender in the country, but it would recognize it as a legitimate payment option.
While consumers would be protected, courts would still be granted rights in confiscating cryptocurrencies tied to suspicious transactions, according to federal deputy Paulo Martins who pitched the proposal last week.
The proposal will be tagged on to Article 835 of the Civil Procedure Code. It will essentially state that cryptocurrencies are not ‘currency’ as such, but they can still be used to access goods and services, or even investment.
This is an interesting read of what cryptocurrencies are and strikes a balance between recognizing BTC and other cryptocurrencies as ‘currencies’ but at the same time enabling consumers to continue using them as a means of exchange.
If this amendment comes into effect, it will enable consumers to pay for goods in cryptocurrencies, providing a vendor is willing to accept such payments.
While courts may be able to freeze and seize certain cryptocurrency assets, an important addition to this law is that the court would not be able to seize the private keys that are used to unlock the crypto wallets owned by consumers.
One omission in this proposal is that it does nothing to specify how courts would be able to seize assets from self-custodied wallets.
These wallets are those in which funds are stored on hardware by the user and not on a crypto exchange which can assist authorities.
Courts would be able to assist in collecting payments from debtors who have cryptocurrency assets but have not covered debt payments and have been ordered by law to do so.
If you already use cryptocurrencies, this is great news. Even better news is the fact that you can use BTC and other digital tokens to game at Bitcasino, 1xBit or FortuneJack.