The proposed law won’t essentially create crypto medium of exchange within the country, however it’ll legal tender be a legally recognized monetary plus for investments and other uses.
A planned addition to an existing Brazilian law would grant Brazilians the correct to use cryptocurrency as a way of payment while protecting their private keys from being taken by the courts.
Federal Deputy Paulo Martins issued the proposal to the country’s legislature on Friday. If passed, the bill would expand each the legal uses of cryptocurrency in Brazil and the power the courts would have in confiscating it.
The proposed addition in Article 835 of the Civil Procedure Code states that while crypto assets aren't a currency in and of themselves, they may be “used as a monetary asset, means of exchange or payment, or instrument of access to goods and services or investment.”
It would not essentially build Bitcoin or any crypto legal tender other country. it might instead build crypto a financial recognized financial plus for investments and other uses.
A rendition of the proposal suggests that cryptocurrencies like Bitcoin (BTC) or Ether (ETH) might be wont to pay for goods and services across the country. It may even be wont to pay outstanding debts “in the event of offering or forced constriction” of crypto assets.”
The proposal also discusses the new powers and limitations that Brazilian courts would have once crypto is recognized as a financial plus, like freeze exchange accounts.
However, the proposal has also stopped short of giving the court power to seize users’ private keys:
“The following rules will be observed: Access, by the Judiciary, to the users’ private key is prohibited.”
A human would have to send their crypto payment to the court’s case to make sure its validity. The proposal doesn't mention however the court would get crypto from self-custodied wallets.
For those that keep their crypto on exchanges, the court would have the ability to force “intermediaries” such as exchanges to freeze the debtor’s crypto assets:
“In the event that the debtor’s assets are not located, the creditor may request the competent Court to issue an ex officio, by electronic means, to the intermediaries involved in operations with crypto-assets, so that assets corresponding to the amount executed are blocked.”
( Brian Newar, Cointelegraph, 2022 )