Rio De Janeiro’s Aim to Be Brazil’s Crypto Center
The crypto market may see some rough changes. However, its adoption is growing at a bizarre rate around the world. Some cities aim to be at the forefront of the crypto revolution in their country. One of them is the tourist hotspot of Brazil, Rio de Janeiro. The city’s municipal secretary for finance and planning announced the government’s plans to integrate Bitcoin, also the crypto market to make the city a crypto ecosystem.
The city’s intention to adapt to the future is valid. The city reportedly has an eye on the future. The City Hall monitors technological and economic achievements. In addition, It also forwards the issue of accepting Bitcoin. The goal is for Rio to become Brazil’s crypto ecosystem. It will contribute to making the city the innovation and technology capital of the country to this end, the city government established the Municipal Committee for Crypto Investments in March 2022. It was precise to work on the investment policy for crypto assets, as well as the decision-making management model.
Brazil is already showing strong interest in adopting cryptocurrency. The congressman presented the legislative proposal to members of the country’s National Congress in mid-June with wording that introduces a detailed definition of cryptocurrency. Accordingly, it accepts Bitcoin as a means of payment. If this bill is acceptable, Brazil could become the next country on the list to introduce the flagship digital asset as legal tender following in the footsteps of El Salvador and the Central African Republic. Meanwhile, the country pioneered the launch of the world’s first financial exchange-traded fund, approved in the winter of 2022.
Policy Makers and Regulating Crypto
Regulators must speed up work to establish effective cryptocurrency rules, the Bank of England’s deputy governor said about $2 trillion disappeared from crypto markets in recent months. The meltdown was because by the collapse of multibillion-dollar stablecoin issuer Terra and other participants. Technology does not replace risks in economics and finance. Crypto technologies are the prospect of substantial innovation and improvement in finance. However, to be successful, sustainable innovation must occur within a framework in which risks are managed.
In light of recent developments, international regulators are showing signs of accelerating global crypto regulations. The Basel Committee on Banking Supervision is preparing to issue guidelines on the prudential treatment of crypto assets held by banks. Meanwhile, the international financial watchdog the Financial Stability Board is set to propose crypto regulations by October.
The collapse of TerraUSD may also hasten the rules for stablecoins that are tied to the value of real assets such as the US dollar. In June, EU politicians agreed on a landmark crypto-regulatory framework that focuses heavily on the regulation of stablecoins.
The UK government is also coordinating efforts to create stable coin regulation. It might come out in August. The Treasury has already issued advice on the management of stablecoins, which could affect larger financial systems. Regulators in the UK hope to issue a consultation document on a regulatory policy framework for stablecoins later this year.
This added that crypto regulations should follow the principle of the same regulatory outcome. This means that regulators should try to expand existing financial rules to mitigate similar risks associated with crypto. However, when this fails, regulators may have to take stronger measures.