Cryptocurrency as Payments in Brazil? Not exactly - Let's talk about some confusion and misinformation being spread

I'm seeing a lot of misinformation about the "Brazil Crypto Bill". Which many news portals are promoting as legal approval of using cryptocurrencies as payments in Brazil.

TL;DR: Things are not what they seem.

The bill began to be worked on in 2021, based on an old project from 2015, which was based on a report issued by the European Central Bank (of the same year).*

Law Inception.

\this information is important.*

And it underwent many modifications until the current version.

The initial text had more than 33 articles (I read all of them) that intent to bring various regulations to the market, but mainly to institutions providing services related to cryptocurrencies.

The current text, voted and approved, has only 4 out of 33 (~10%).
And the Art.4 is just defining immediate effect after presidential sanction (which has not yet happened).

Only 3 articles really bring CHANGES in the legal scope and their intention is only to DELEGATE regulatory responsibility to the defined bodies. Just it.

The Crypto Bill is just an initial regulatory movement, which defines WHO will regulate from now on.

In this case: The Central Bank of Brazil (BACEN).

The same Central Bank that in 2023-2024 should launch its own currency, whose other currencies that it will regulate from now on, are competitors.

And it allows BACEN to use Consumer Protection laws and laws against Money Laundering Crimes for this purpose.

The Crypto Bill DOESN'T turns cryptocurrencies into legitimate means of payment.

It only recognizes that they are already used in this way and that, therefore, the Central Bank is the one who must create the rules for their use within SIX MONTHS after the presidential sanction.

We are yet to find out if the regulations of the direct competitor of cryptocurrencies will be favorable or unfavorable to their use as money, but I am very pessimistic about this, for obvious reasons of CONFLICT OF INTEREST.

The quote they are using to justify the incorrect headlines is not part of the law itself and has no legal effect with the recent vote.

"It constitutes a recognition that virtual currencies are payment systems and as such must be closely monitored."

It is just a comment from the deputy who wrote the initial 2015 version, responding to an excerpt from the ECB report (2015).

“fall under the responsibility of the Central Banks insofar as their operation has shared characteristics with payment systems, which implies the need to examine at least some of their developments and the provision of an initial assessment”.