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Brazil will not follow El Salvador and adopt Bitcoin, reveals BC

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After El Salvador announced the adoption of Bitcoin as a legal tender, the cryptocurrency community began demanding their country’s representatives for a position on the cryptocurrency.

Several nations were interested in the example of El Salvador and declared to study something similar. An example of this is Argentina, which recently declared that it can use Bitcoin to escape inflation. However, in the case of Brazil, there will be no adoption of Bitcoin.

As revealed by the Central Bank of Brazil (BC), there is no possibility for the country to follow in the footsteps of El Salvador or nations like Argentina and adopt Bitcoin as a legal tender.

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For BC, BTC is a purely speculative asset with high volatility. Therefore, the monetary authority does not intend to adopt cryptocurrency for any purpose.

“Bitcoin we see as being a speculative asset. A high volatility asset. So, we have no intention in Brazil of entering into Bitcoin-denominated contracts”, said Fabio Araujo, economist and responsible for the Real Digital project within the BC.

On the other hand, Araujo pondered that BC also has no intention of banning BTC in Brazil.

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“We also have no intention of banning people from using Bitcoin,” said Araujo.

Anyway, he pointed out that the adoption of digital currency by the monetary authority would be equivalent to adopting a certain action or investment product. So it doesn’t make any sense to the regulator.

Real Digital

During a live promoted by IG, Araujo commented on the cryptocurrency market. But he also spoke about the project of the digital real, Brazil’s central bank digital currency.

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According to him, the Central Bank’s intention is not for Real Digital to eliminate physical money.

“We want a system where people use both currencies in the same way. BC believes that it is important to give people options. Our intention is to make it easier and more plural”, he said.

Read also: Dogecoin explodes in adoption and $1 price is not discounted by expert

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