“There will only be one cryptocurrency in Brazil,” says SUSEP’s chief inspector

During the drex annual meetingheld by the Central Bank of Brazil last Thursday (7), Alessandro Octaviani, Chief Inspector of the Private Insurance Superintendence (SUSEP), discussed the implications of cryptocurrencies in Brazil, where digital assets are still unregulated as a means of payment.

He stated that, from the current regulatory perspective, the Brazil will have only one cryptocurrencyhighlighting that such coin will be the coin representing the Brazilian national currency, the digital real, also known as DREX.

Octaviani emphasized the relevance of considering the impact of the digitalization of assets in the economic context, emphasizing that the national currency, the real, It is the only legal and forced tender in the country.

He emphasized that, unlike goods or active Like “Children’s Milk Candies” and ‘cryptoassets’ such as Bitcoin, Ethereum and others, the national currency cannot be refused as a means of payment.

“Look, cryptocurrency, there will be one here in Brazil, if you go to the bakery and pay R$2 and someone says, ‘I’ll give you the change in Late Kids sweets’, like we used to see when we were little, you may decline as this merchandise is not legal tender or compulsory tender.

If someone says: ‘I’m going to give you back crypto assets issued by I don’t know who is very good, etc., you can also refuse, you say I don’t want small bullets or crypto assets for children. If someone tells you that I will pay you back in reais, you cannot refuse.’

🚨”There will only be one ‘cryptocurrency’ in Brazil” – says Alessandro Octaviani, Chief Inspector of the Private Insurance Superintendency (Susep).

The speech took place at the Drex Annual Meeting, a BC event. pic.twitter.com/mn8AQ9rEjx

— Livecoins (@livecoinsBR) December 9, 2023

Will other cryptocurrencies be banned?

Despite suggesting that other cryptocurrencies will cease to exist, Octaviani’s speech is related to how regulators are using the cryptocurrencies.

It is important to note that since 2017, the IMF has suggested that regulators around the world not call Bitcoin and other cryptocurrencies cryptocurrencies.

The argument was that such a term endorses cryptocurrencies as currencies and that regulators and authorities around the world therefore started calling Bitcoin and other cryptocurrencies ‘cryptocurrencies’.active”, which could explain the SUSEP superintendent’s statement.

In summary, the statement suggests that the Central Bank will continue to classify Bitcoin as a ‘crypto asset’ and that it is possible that the digital currency will be banned as a means of payment following the arrival of CBDCs.

Following Drex’s annual meeting, Octaviani addressed the need for an ongoing and proactive dialogue between SUSEP, the Central Bank and the CVM (Securities Commission) to address the regulatory challenges that will arise with the eventual internalization of cryptocurrencies in financial statements .

The Chief Inspector raised specific concerns about cybersecurity, highlighting that different sectors of the financial market, such as banking, insurance, endowment and private pensions, have different capacities and preparation times to meet digital security challenges.

He also mentioned the risk of counterfeiting of digital assets and the need for robust measures to prevent illegal activities.

The discussion indicates that the Central Bank is paving the way to regulate the cryptocurrency market in Brazil, showing that it will have a similar approach to other countries.