Monday, November 29

Legislative idea proposes Bitcoin as legal tender in Brazil

On September 7, 2021, coincidentally, the day that commemorates the independence of Brazil, Bitcoin was adopted as the official currency of El Salvador. It all started on El Zonte beach in 2019 with an experiment called Bitcoin Beach, created by the american Michael Peterson who organized local social projects to create a local Bitcoin-based economy.

With the 12 Bitcoins donated by an anonymous person, the Bitcoin Beach experiment positively impacted the lives of more than 600 families, resulting in a change in legislation across the country that adopted Bitcoin as the official currency, using Bitcoin in the same way it was experienced in Bitcoin Beach.

Before, during and after adoption, deep philosophical evocations are made by users who begin to discover how money works, the ills of the monetary system, and why, after all, those bitcoin fractions he bought or earned by providing a service or selling one. product, despite its volatility, always reaches new historical highs.

Bitcoin Beach

Over at Bitcoin Beach in El Zonte, Unbanked people were doing Bitcoin transactions as early as 2019, being included financially, participating in a growing economy with diverse opportunities and use cases that trump traditional money in many respects.

Few people know it, but from the early days Bitcoin has promised to allow us to bankroll the unbanked and return the power of governments and financial institutions back to the individual. However, until recently, this promise has remained elusive.

With the emergence of new technologies like Lightning Network, mass adoption of Bitcoin could be very close as Bitcoin’s value attributes are powerful, time has shown its exponential growth and the technology is ready to be used by anyone with an old smartphone connected to the Internet. Now it’s just up to us.

Bitcoin Beach Brasil

Here in Brazil, the Desbancarizados total 34 million people. This portion of 21% of Brazilians moves around R$ 347 billion per year, which corresponds to 8% of the mass of income in the country. Also according to the survey, among the other 79% of the population, there are sub-banked, or excluded financials.

Inspired by what happened in El Salvador, I decided to replicate the Bitcoin Beach experiment, here in Brazil, in Vila de Jericoacoara, in the interior of the state of Ceará, but adapted to the Brazilian reality and thus, the Tupiniquim micropayment experiment was born, Bitcoin Beach Brasil.

Without sponsorship, with a personal donation of 0.02 BTC and help from some local residents, we started running our own complete node for educational purposes and installing Blue Wallet wallets to distribute 1 real bitcoin to each new user, simple people who never had had no contact with Bitcoin and when it was someone who provided a service or sold a product, it was acquired with a fraction of bitcoin limited to R$20, always using Lightning Network, but also creating traditional bitcoin wallets for that users were prepared to move their funds to a more secure location.

A few weeks later, more than 10 establishments and 300 desks had been installed, without any help or approval from the state, just a little goodwill and a focus on social work of financial education.

The journey of each user after taking the orange pill and entering the rabbit hole is unique. They carefully craft their questions and rephrase their answers to expand the experiment and explain about this money that doesn’t exist but is valuable and volatile. Doubts are manifold and lead to an ever-broader understanding of what a currency, an investment, freedom, even creative ways to protect private keys or avoid a scam are imagined in discovering each possibility.

The power of Bitcoin financial technology goes far beyond capital gain, it provides access, uncomplicates and protects the user, as the saying goes, his keys, his bitcoin, susceptible to different senses.

If anyone can already use Bitcoin, why do we need it to be legal tender?

First of all, a legal tender is one that, according to the law, can be used to pay off public or private debts and meet financial obligations. There are several positive and negative aspects of making Bitcoin legal tender in Brazil. It’s an idea that needs to be considered for several reasons, but the financial inclusion factor, in my view, is the best pro-bitcoin argument.

Year after year, banks publish their balance sheets with profits extracted from society, usurping all faithful holders of the traditional fiat money that only devalues. Meanwhile, on the other hand, the government balances the dishes, printing money, issuing bonds, increasing interest rates and dancing with the exchange rate, always by default, disfavoring the most vulnerable population with less purchasing power.

Bitcoin gives us a chance to balance that scale, as using it we inevitably become our own bank. Due to the different value attributes and its layers of technology, Bitcoin reduces the concentration of power of institutions and gradually restores financial freedom to the individual.

I know it’s impossible to please Greeks and Trojans, much less Bitcoin deniers, who deny its importance and even its tangible value, the 200 billion reais being transacted daily in the world on a normal day, and which is already the 14th world currency in market value, with liquidity pairs in almost every currency out there, it’s just a few clicks away.

Legislative idea proposes Bitcoin as legal tender in Brazil

Depending on how the user uses Bitcoin, it may be impossible for a new Collor to confiscate it for whatever reason. Also, a little deeper into the rabbit hole, we can’t stop talking about scarcity, as there will only be 21 million Bitcoins, while the fiat currency will be printed without limits until the economy collapses, as has always happened repeatedly in history. of humanity.

That said, it becomes necessary to take Bitcoin to the less fortunate through a dialogue with the state, as these people forgotten by the traditional financial system would be the main beneficiaries of a favorable monetary policy, less dependent on the Dollar, based on digital scarcity.


Making Bitcoin legal tender in Brazil, as was done in El Salvador, is necessary, as it will take the technology to everyone and even exempt Bitcoin receipts from capital gain taxes.

For these reasons, I posted this legislative idea in the Federal Senate, suggesting the Adoption of Bitcoin as a legal tender in Brazil, along the lines of Decree of Law approved in El Salvador. To support, just login they link, click Support, login and confirm.

We need 20,000 signatures for the topic to be discussed and later become a bill.

Special thanks to Michael Peterson and the entire team at Bitcoin Beach, who even unintentionally showed us where to start and today Bitcoin as a form of payment is a reality in Jericoacoara, soon, who knows, throughout Brazil.

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