The president of the central bank of Brazil, Roberto Campos Neto, has defended the utilization of more moderate regulations within the crypto environment. Campos Neto stated that while regulation is so necessary, it's to be done in a way that doesn’t stop innovation. He also explained his goal is to connect the digital with the regulated world.
Central Bank of Brazil President Criticizes Harsh Approach to Crypto Regulation
Central banks of many nations around the world are starting to establish their stances once it comes to cryptocurrencies and central bank digital currencies (CBDCs). At “The regulation of cryptocurrencies in Brazil and within the world,” a discussion event, the president of the central bank of Brazil, Roberto Campos Neto, gave his thoughts about cryptocurrency regulation.
According to Campos Neto, regulation of those instruments should be created in an exceedingly way that permits for innovation and growth of investments in cryptocurrencies. He stated:
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.
Furthermore, Campos Neto, of that in every one of his goals is to integrate the digital and also the regulatory world, in a different means from what other central banks do.
The president of the Brazilian Securities and Values Commission (CVM), João Pedro Nascimento, also expressed he had similar ideas, saying that regulation shouldn't stifle the expansion of the crypto market. He declared:
Banning a revolution is not something we will do.
Nascimento had previously declared there's a natural demand for cryptocurrency regulation as a consequence of the evolution of the technology. The CVM has proposed a consultative opinion concerning crypto and its treatment, that's below review, to be used before a crypto-centric law is sanctioned.
The legislative method for approving a cryptocurrency bill is quite advanced within the country. A cryptocurrency-centric bill, that may 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 overall ballot to elect the president, vice-president, and members of Congress, this discussion might be delayed again.
(Sergio Goschenko, bitcoin.com, 2022)